Legal Crypto In Burundi

Cryptocurrency in Burundi

Introduction

Cryptocurrencies, which have grown worldwide, have led to different responses in domestic regulation among nations. In Burundi, a small African nation, the legality of electronic currencies remains uncertain due to the cautious stance adopted by authorities. This document explores the legal status of cryptocurrencies in Burundi, the regulatory landscape, methods to buy and transfer crypto, and the state of DeFi and NFT markets in the country. It concludes with additional information and a summary of the main findings.

Is Cryptocurrency Legal in Burundi?

As of May 2025, there is no specific law in Burundi that either permits or prohibits cryptocurrencies such as Bitcoin or Ethereum. For users and businesses, the lack of clear legislation creates uncertainty. According to a report by the Law Library of Congress, Burundi is among the countries where regulation of cryptocurrency usage or trading is unclear. This aligns with a broader trend noted in Wikipedia, which highlights that the legal status of cryptocurrencies varies widely by jurisdiction and is subject to frequent changes.

The Central Bank of Burundi (Banque de la Republique du Burundi) has not issued statements explicitly banning or legalizing cryptocurrency-related services or activities. However, in 2017, the bank warned about the risks of unregulated digital currencies, citing concerns such as money laundering, fraud, and financial instability. While this stance is restrictive, there is no formal ban. Cryptocurrency use is permitted but lacks legal validity or mechanisms for dispute resolution.

Regulatory Framework

Burundi’s financial regulatory system primarily focuses on conventional banking and fiat currency. The Financial Markets Law and the Banking Law, which govern financial activities, do not explicitly reference cryptocurrencies. The Central Bank oversees monetary policy and regulates financial institutions, including money transmission and exchange services, which require licensing. As cryptocurrencies are decentralized and not state-issued, they fall outside these frameworks, leaving exchanges and users unregulated.

Anti-money laundering (AML) and counter-terrorism financing (CTF) measures, influenced by international practices, may indirectly apply. For instance, the Financial Intelligence Unit of Burundi could investigate cryptocurrency transactions suspected of criminal activity, given global concerns about digital assets facilitating money laundering. However, without crypto-specific laws, enforcement remains limited.

The absence of a capital gains tax system in Burundi means there are no specific rules for cryptocurrency gains. However, a 2024 IMF report indicates that regional countries like Kenya are considering comprehensive tax reforms for crypto assets, which could influence future policy in Burundi.

Favorite Exchanges and How to Trade

Due to the unregulated nature of the market, major decentralized exchanges like Binance or Coinbase do not operate directly in Burundi. Instead, individuals rely on peer-to-peer (P2P) networks and informal channels. Platforms such as LocalBitcoins and Paxful are used in the region, though data on their usage in Burundi is scarce. These platforms enable users to convert cryptocurrencies to the local currency (Burundian Franc) or mobile money, which is widely used due to high mobile penetration (1 USD = 2000 BIF via mobile money).

Informal exchange methods, such as physical cash trades and mobile money transfer services like Lumicash, are also common. These methods carry risks, including fraud and lack of dispute resolution, but they circumvent the need for robust banking infrastructure, which is limited in Burundi. The adoption of stablecoins like USDT for cross-border transactions is increasing, particularly among tech-savvy youth, but usage is constrained by limited internet access and knowledge.

DeFi and NFT Markets

Decentralized finance (DeFi) and non-fungible token (NFT) markets, which are gaining traction globally, have minimal presence in Burundi. DeFi platforms, which enable borrowing, lending, and trading without intermediaries, require reliable internet and technical literacy—both of which are limited in Burundi. With internet penetration at approximately 10% and frequent power outages, DeFi protocols like Uniswap or Aave are not yet in use. Additionally, the lack of regulatory clarity deters institutional participation, further limiting DeFi growth.

The NFT market is similarly underdeveloped. NFTs, which represent unique digital assets on blockchains, have gained global attention in art, gaming, and collectibles. However, in Burundi, low awareness, restricted access to blockchain networks like Ethereum, and economic challenges hinder NFT adoption. No notable NFT projects or marketplaces have emerged from Burundi, and participation is limited to a small group of tech enthusiasts using international platforms like OpenSea.

While new merchant segments are forming in global DeFi and NFT marketplaces, these trends have not yet materialized in Burundi due to connectivity and regulatory constraints.

Additional Information

• Central Bank Contact: Banque de la Republique du Burundi, [email protected], for inquiries about financial regulations.
• Internet Penetration: Approximately 10% of the population has internet access, limiting cryptocurrency adoption (2024 estimate).
• Mobile Money Usage: Around 30% of both males and females use mobile money, with over 50% of adults engaging in mobile money transactions at least once in the past year, facilitating P2P crypto transactions.
• Regional Influence: Kenya is developing crypto tax policies that could influence Burundi’s future regulatory approach.

Table of Key Data

Aspect	Details
Legal Status	Undefined; no explicit ban or legalization
Regulatory Authority	Central Bank of Burundi; no crypto-specific laws
Popular Exchange Methods	P2P platforms (e.g., Paxful), mobile money, informal cash trades
DeFi/NFT Adoption	Minimal due to low internet access and awareness
Tax Policy	No capital gains tax; potential future reforms based on regional trends

Conclusion

In Burundi, the cryptocurrency industry operates in a legal and regulatory gray area, with very low market adoption. The absence of specific legislation leaves users vulnerable, and the Central Bank’s cautious stance reflects concerns about financial stability. Most cryptocurrency transactions occur through P2P platforms and informal channels, while DeFi and NFT markets remain underdeveloped due to infrastructural and awareness barriers. As cryptocurrency use grows globally, Burundi may follow regional trends toward regulation and taxation. For now, individuals engaging in cryptocurrency transactions navigate a complex and unregulated environment.