Formulating Anti-Money Laundering (AML) Regulations for Cryptocurrency Trade in Ethiopia: Opportunities and Barriers for Banks
| dc.contributor.advisor | Dakito Alemu (PhD) | |
| dc.contributor.author | Kidist Berihu | |
| dc.date.accessioned | 2026-03-03T05:10:24Z | |
| dc.date.available | 2026-03-03T05:10:24Z | |
| dc.date.issued | 2025-09 | |
| dc.description.abstract | This study explores the absence of Anti-Money Laundering (AML) regulation for cryptocurrency transactions in Ethiopia and how it affects the banking sector. With the widespread international use of online currency, Ethiopia maintains a legal ban on cryptocurrency trading, resulting in a significant regulatory gap. This lack of a clearly defined AML system limits banks from establishing relationships with or responding to growing uses of cryptocurrencies. It also subjects the financial system to possible dangers such as money laundering, fraud, and regulatory risk, yet restricts institutions from being in a position to have the potential benefits of cryptocurrency such as greater financial inclusion, reduced remittance cost, and digital cross-border payments. To study these research, a mixed-methods approach was employed. Primary data were collected through questionnaires distributed to 45 professionals from banking, regulatory experts, fintech and academia and were analyzed using descriptive statistics. Thematic analysis of in-depth interviews with major stakeholders was conducted with 6 professionals from regulatory, banking and fintech. Results showed that Ethiopian banks are constrained by inflexible legal frameworks, lack of appropriate technology capabilities, and institutional uncertainty with regard to crypto-related AML compliance. However, participants recognized the potential of blockchain and digital assets to transform financial services if properly regulated. The study concludes that Ethiopia's present regulatory approach toward cryptocurrencies restricts both innovative processes and risk control methods. The study recommends that Ethiopia should change its prohibition stance by implementing an organized regulatory framework which can adapt to new developments. Through improvements in institutional frameworks and technology integration with fintech advancements Ethiopia can establish an advanced banking system which is both inclusive and secure and forward-thinking. | |
| dc.identifier.uri | https://etd.aau.edu.et/handle/123456789/7758 | |
| dc.language.iso | en_US | |
| dc.publisher | Addis Ababa University | |
| dc.subject | Anti-Money Laundering | |
| dc.subject | Cryptocurrency | |
| dc.subject | Blockchain | |
| dc.subject | Financial Regulation | |
| dc.subject | Ethiopian Banks | |
| dc.subject | Compliance | |
| dc.subject | Digital Assets | |
| dc.title | Formulating Anti-Money Laundering (AML) Regulations for Cryptocurrency Trade in Ethiopia: Opportunities and Barriers for Banks | |
| dc.type | Thesis |