In June of this year, the Central Bank of Ethiopia issued a statement stating that crypto businesses in the country… It is illegal. Less than three months later, the country appears to have reversed that decision, instead requiring cryptocurrency operators to register with the national cybersecurity agency — the Information Network Security Administration. (INSA)–Within 10 days.
The government’s move to recognize the industry is part of its desire to be proactive in protecting citizens from crypto-related cybercrime.
“Individuals and institutions are interested in providing crypto services, including mining and transfers,” INSA said, warning that crypto players who fail to register will be prosecuted even globally. Crypto winter On August 28, Bitcoin plunged. Under $20,000 For the first time since July 14
In June, INSA said it had thwarted 97 percent of cyber attacks on various institutions in the country since July 2021, helping the country. A savings of $26.3 million.
Although African countries recognize the growing threat of cyber insecurity on the continent, none have taken steps to mitigate against cyber attacks lurking in online crypto markets. Ethiopia wants to lead in this front.
And even though Africa is lagging behind in crypto adoption, Ethiopia is. Catch up fast With dominant players like Nigeria, Kenya, South Africa and Egypt. with 1.8 million bitcoin tradersEthiopia ranks seventh in Africa in crypto holding capacity.
Crypto Challenges in Africa
Despite the growing interest, crypto trading is banned by most African governments, with the exception of the Central African Republic. In May, Uganda launched a nationwide crackdown on payment providers facilitating crypto transactions, after 5,000 victims lost nearly $2.7 million to Ponzi schemes.
have been. Stories of pain In Kenya, Ethiopia’s southern neighbor, when traders were burned in May. However, Ethiopian crypto traders continue to find business, and Nine crypto exchanges Selling them digital coins.
“While it is argued that blockchain is a more secure method of transaction, the downside of course is that if you lose your private key there is no way to recover your funds,” Eva Salami, fintech regulation Expert of Told the conversation.
Billions of dollars have been lost through crypto cyber attacks.
The latest Chainalysis report shows the losses caused by cryptocurrency scams A 60 percent increase It reached $1.9 billion in the first seven months of this year, driven by an increase in funds stolen from decentralized finance (DeFi) protocols.
Once seen as impregnable by hackers and ransomware groups, cryptocurrency platforms Be a target of cyber attacks. Because it is the preferred payment method for all types of scams, stolen income and fraudulent transactions. The FBI’s Internet Crime Report shows that the criminal use of cryptocurrency is among the top three reported incidents of cybercrime in the world.