Regulation: Crypto Ban Still Effective in Central Africa Republic

By: Dickson Arinze

Regulation: Crypto Ban Still Effective in Central Africa Republic

May 16, 2022 1:27 PM

 An African controller has told members of the six- nation Economic and Monetary Community of Central Africa (CEMAC) that a ban on cryptocurrencies is still effective. The controller said the prohibition is designed to guarantee fiscal stability is maintained within the profitable bloc. 


 COBAC to Set Up System to Identify Crypto Deals 

An African controller, the Banking Commission of Central Africa (COBAC), has reminded members of a indigenous profitable bloc that includes the Central African Republic (CAR) that its ban on cryptocurrencies remains in effect. The controller’s rearmost warning follows the CAR’s recent decision to embrace bitcoin as the country’s “ currency of reference.” 


According to a Reuters report, COBAC — a controller of the banking sector in CEMAC — believes the prohibition will guarantee fiscal stability. In a statement issued after it held a special meeting on May 6, the controller reportedly said it'll also take way to identify and report crypto- related deals. 

 “In order to guarantee fiscal stability and save customer deposits, COBAC recalled certain proscriptions related to the use of crypto- assets in CEMAC. COBAC has decided to take a number of measures aimed at setting up a system for relating and reporting operations related to cryptocurrencies,” the controller is reported to have said. 


 Central Africa Republics Supremacy
Before the rearmost warning by the indigenous controller, the Bank of Central African States had told the CAR to annul its decision to make bitcoin legal tender. Rather of embracing cryptocurrency, the indigenous central bank said the CAR should concentrate on enforcing the financial procedures of CEMAC, which it said would reduce aboriginal poverty. 


Meanwhile, the report quotes a spokesperson for the Central Africa Republic (CAR) government, Serge Ghislain Djorie, who claimed that COBAC has not yet formally notified his country of the regulator’s renewed pushback against cryptocurrencies. Djorie said his government will issue a response once it's in possession of the COBAC document. However the spokesperson suggested his government won't be forced to change its position by an stranger. He said “ It must be understood that each state has freedom.”