Citing an inability to protect consumers in the event of wrongdoing or mishap, authorities in Burundi banned the trading and possession of cryptocurrencies earlier this month.
Alfred Nyobewumusi, director of the Burundi central bank’s microfinance department told Bloomberg that the decision was made after citizens who lost money engaging with cryptocurrencies asked the government to act.
Cryptocurrencies such as Bitcoin and Ethereum are now illegal in Burundi, said and, “Strong measures could be taken against all those who will not respect the decision.”
The site Localbitcoins.com, which coordinates independent cryptocurrency buyers and sellers, currently lists one individual selling bitcoin online in Bujumbura, Burundi’s former capital city.
The United Nations’ news service reported September 4th that a “climate of fear” is prevailing in Burundi ahead of the country’s 2020 elections.
In March, Burundi media regulators revoked the BBC’s license to report in the country after the broadcaster aired a documentary that described, “secret detention and torture sites in Burundi.”
A UN panel expert has claimed that a pro-government youth group called “Imbonerakure” has been terrorizing Burundian locals who refuse to express support for the country’s president. “They are present everywhere, and they are able to intimidate, terrify,” she said. Sexualized violence has reportedly been common.
Reuters reports that a refugee crisis is afoot in the region:
“Hundreds of Burundians have been killed in clashes with security forces and half a million have fled abroad since President Pierre Nkurunziza announced in 2015 he would run for a third term in what his opponents saw as a breach of the constitution. He won re-election.”
Burundi, described as one of the poorest nations in the world, sits on the eastern shore of Lake Tanganyika.
Bitcoin has been described as a hedge and capital flight instrument for citizens enduring repressive regimes or hyperinflation.