The crisis-ridden central bank of Sudan has warned residents handling cryptocurrencies that they face numerous risks, including loss of value. The warning comes as Sudan is grappling with an economic crisis that worsened after the civilian government was overthrown by the military.

Sudan’s economic crisis worsening

As Sudan’s currency continues to plummet, the country’s central bank has warned citizens not to use or trade cryptocurrencies, according to a report. He warned those dealing with crypto assets that they face risks such as loss of value, financial crime and electronic hacking.

The warning from the Central Bank of Sudan (CBOS) comes amid a worsening economic crisis which has seen Sudanese exports fall by 85% in January. The warning also comes as reports suggest the country’s currency, the pound, is losing ground against the US dollar on the black market. Deteriorating economic conditions are believed to be key factors behind the increased interest in cryptocurrencies by Sudanese residents.

However, according to a report published by the Sudan News Agency, the CBOS has suggested that residents handling cryptocurrencies also face legal risks. Such risks, the central bank argued, stem from what it said was the failure to classify cryptocurrencies as “money or even private money and property” under the country’s laws.

The report added that other risks also stem from what the CBOS called its “material lack of coverage” as well as its issuance by unauthorized or unaccredited bodies. However, the report does not indicate whether Sudan’s military government, which took power in October 2021, plans to enact new laws that would punish Sudanese residents for ignoring the central bank’s warning.

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