With all the attention that cryptocurrency receives from countries such as Malta, the United States and China that is developing their national digital currency, one could simply assume that crypto has seen worldwide acceptance and is embraced by all governments in the world. However, this is far from the truth as cryptocurrency has seen the government push back in countries such as India and even China itself despite the development of their national cryptocurrency.
One of the common issues that world governments face with regards to cryptocurrency is that it used for money laundering purposes and other illegal activities and this is an ongoing problem across the globe. Unfortunately, the challenges have proven to be difficult for Burundi government as it was announced on September 4, 2019, that the government of Burundi has banned cryptocurrency within the country.
Burundi Bans Crypto
This decision was taken due to many citizens of the central African nation losing money in the process of making use of digital currency. It is not unusual for people to get scammed by malicious parties who prey on the lack of information about cryptocurrency and resort to dubious methods such as stealing of funds from exchanges and wallets, duping people into handing over their tokens to and collecting fire currency for dubious investments.
Following these events, the government has made it illegal to deal in cryptocurrency within the country and this essentially stifles the entire industry within the country of Burundi and despite complaints from some actors within the industry about the implications, the government is standing firm on its decision.
“Strong measures could be taken against all those who will not respect this decision,” said Alfred Nyobewumusi, a director at the central bank’s microfinance department.
Now that’s a ban has been put in place, there is the question of whether or not it will be fully effective as despite the ban placed on cryptocurrency in China, citizens continued to trading crypto through the use of virtual private networks and the act doesn’t seem to be stopping anytime soon. Also, one needs to consider the upcoming libra token which is poised to be a worldwide phenomenon and whether or not it will operate within Burundi or if the band will restrict it as well.