Legal Crypto In Sudan

Digital Currency in Sudan: What Is the Current State in 2025?

Sudan's economy has experienced periods of instability, characterized by high inflation and limited access to formal banking services. Cryptocurrencies, Decentralized Finance (DeFi), and Non-Fungible Tokens (NFTs) offer potential avenues for financial inclusion and innovation. However, the legal and regulatory landscape for these technologies remains complex and unclear. This article examines the legality of cryptocurrencies in Sudan, the regulatory framework for traders, exchange mechanisms, and the state of DeFi and NFT markets in 2025. It also explores how cryptocurrencies address hyperinflation and enhance financial inclusion.

Is Cryptocurrency Legal in Sudan?

Cryptocurrencies in Sudan exist in a legal gray area, with no explicit regulations permitting or prohibiting their use, except under a broad ban on foreign currencies. In 2022, the Central Bank of Sudan issued warnings against Bitcoin and other cryptocurrencies, citing risks of money laundering and financial system destabilization. While bans were proposed, no formal prohibitions have been enacted as of 2025. This regulatory ambiguity creates a situation where cryptocurrencies are neither fully legal nor explicitly illegal.

The Sudanese government does not recognize cryptocurrencies as legal tender, and they are not accepted in the formal economy. Despite this, tech communities and startups in Sudan have adopted cryptocurrencies out of necessity, operating in a legal vacuum that poses potential risks to users.

Cryptocurrency Market

No specific laws govern cryptocurrencies in Sudan. The Central Bank of Sudan regulates the financial sector under the Banking Business Regulation Act, which does not address cryptocurrencies. Anti-money laundering (AML) and counter-terrorism financing (CTF) laws, such as the Anti-Money Laundering and Counter-Terrorism Financing Act 2006, may apply to financial transactions broadly but do not explicitly reference digital currencies, making enforcement unclear.

The absence of regulation hinders the development of a formal cryptocurrency market. There are no licensing requirements for crypto exchanges or custody services, nor are there consumer protections for digital asset transactions. This contrasts with global trends toward defined cryptocurrency guidelines, leaving Sudan's crypto market informal and unregulated.

Exchanges and Methods

Due to the lack of a regulated market, cryptocurrency exchanges in Sudan are largely informal. Peer-to-peer (P2P) platforms are a primary method for trading, enabling direct exchanges via mobile devices or social media groups. Platforms like LocalBitcoins and Paxful, though not based in Sudan, are used by some traders to exchange Bitcoin through mobile money services or cash, which is critical in a country with limited banking infrastructure.

In 2025, Maker Exchange emerged as Khartoum's first digital asset exchange, aiming to address hyperinflation and cross-border payment inefficiencies. However, its operations are constrained by the uncertain regulatory environment. Informal exchange networks in urban areas, facilitated by encrypted messaging apps, are also prevalent but carry risks of fraud and lack dispute resolution mechanisms.

DeFi Market in Sudan

Decentralized Finance (DeFi) refers to blockchain-based financial services that operate without centralized intermediaries. In Sudan, the DeFi sector is nascent, limited by low internet penetration, technical expertise, and regulatory uncertainty. Despite these challenges, DeFi holds potential to bypass traditional financial systems, which are inaccessible to many Sudanese citizens. Platforms like Uniswap or Aave are accessible to tech-savvy individuals but are not tailored for Sudan.

Infrastructure limitations, such as unreliable internet and limited smartphone access, restrict DeFi adoption. Additionally, the lack of clear regulations deters major DeFi projects from targeting Sudan. Nevertheless, local developers are experimenting with DeFi solutions, such as micro-lending for small businesses, though these initiatives face significant legal and operational risks.

NFT Market in Sudan

As of 2025, there is no significant NFT market in Sudan. Non-Fungible Tokens (NFTs), unique digital assets on blockchains, have gained global popularity for art, collectibles, and virtual real estate. However, Sudan's economic challenges, including hyperinflation and limited discretionary income, hinder NFT market development. The technical complexity of creating and trading NFTs and high blockchain transaction fees further limit participation.

A small number of Sudanese artists have explored NFTs on international platforms like OpenSea, but their involvement remains minimal. Without improvements in education, economic conditions, and internet access, the NFT market in Sudan is likely to remain underdeveloped in the near term.

Cryptocurrencies as a Hedge Against Hyperinflation

With inflation exceeding 400% in 2022, the Sudanese pound has significantly devalued, making cryptocurrencies an attractive option for preserving value. Citizens use Bitcoin and stablecoins like USDT to conduct transactions immune to local currency depreciation. The Sudanese diaspora also uses cryptocurrencies for remittances, avoiding costly traditional channels.

However, the volatility of cryptocurrencies and the lack of regulation introduce risks, including potential scams. Despite these challenges, cryptocurrencies offer a decentralized means to mitigate the effects of hyperinflation, providing an alternative for value storage and transactions.

Financial Inclusion with Cryptocurrencies

A significant portion of Sudan's population remains unbanked, particularly in rural areas, due to an inefficient banking sector. Cryptocurrencies, accessible via mobile phones, offer a pathway to financial inclusion. Initiatives like Maker Exchange aim to leverage blockchain to provide financial services to the unbanked, enabling P2P transactions and microfinance for underserved communities.

Scaling these solutions is challenging due to low internet penetration, limited digital literacy, and regulatory uncertainties. Nevertheless, the potential for cryptocurrencies to bridge the financial inclusion gap remains a compelling driver of adoption in Sudan.

Key Facts

• Projected crypto users: Approximately 50,000–100,000, based on informal adoption rates.
• Popular cryptocurrencies: Bitcoin and Tether (USDT).
• Average transaction size: $50–$200, reflecting small, necessity-driven transactions.
• Internet penetration: 30% of the population, limiting access to digital assets.
• Primary use case: Remittances and protection against inflation.

Cryptocurrency Infrastructure in Sudan

Aspect	Details
Internet Access	30% penetration, concentrated in urban areas like Khartoum.
Mobile Money Usage	High, with platforms like MTN Mobile Money facilitating P2P trades.
Blockchain Developers	Fewer than 500 active developers, mostly self-taught.
Crypto ATMs	None operational due to infrastructure and regulatory constraints.
Local Wallets	No Sudan-specific wallets; users rely on global options like MetaMask.

Conclusion

In 2025, Sudan's cryptocurrency landscape is marked by both opportunity and risk. Cryptocurrencies address critical issues like hyperinflation and financial exclusion, but the lack of a clear legal framework and inadequate infrastructure impede widespread adoption. Informal markets, including P2P exchanges and emerging platforms like Maker Exchange, demonstrate demand for digital assets. However, the DeFi and NFT sectors remain underdeveloped due to technical and economic barriers. For Sudan to fully harness the potential of cryptocurrencies, a regulatory framework that balances innovation and risk mitigation is essential. Until then, the cryptocurrency ecosystem will likely evolve slowly but organically, driven by economic necessity and technological curiosity.