Keep Up with Addis Insight
Add us to your Google Preferred Sources to see updates first.
ADDIS ABABA — Binance, the world’s largest cryptocurrency exchange by trading volume, has restored access to its platform for users in Ethiopia through the state-owned telecommunications operator, Ethio telecom. The resumption follows what the company described as “successful regulatory engagements” with local authorities, reversing a months-long disruption to its services in the Horn of Africa nation.
“Binance is now accessible again in Ethiopia via Ethiotel after successful regulatory engagements,” the company stated in the communication, thanking its user base for their patience during the service suspension.
Central Bank Clampdown on Parallel FX Markets
The restoration follows escalating friction between global cryptocurrency platforms and Ethiopian financial regulators. In May 2026, the National Bank of Ethiopia (NBE) issued a stringent directive declaring peer-to-peer (P2P) cryptocurrency transactions denominated in the Ethiopian Birr (ETB) illegal.
| Timeline of Key Regulatory Events | Action Taken |
| April 2026 | Binance announces future delisting of ETB pairs due to regulatory talks. |
| May 15, 2026 | Official suspension of all ETB-linked P2P trading on Binance, OKX, and Bybit. |
| May 2026 | Central Bank blocks network access to prominent international crypto exchanges. |
| June 2026 | Direct platform access restored via Ethio telecom. |
The central bank’s decision to cut off access to these platforms was primarily driven by macroeconomic concerns. Regulators argued that informal P2P markets were acting as a parallel, unofficial price discovery mechanism for the Birr. This trend complicated official efforts to manage ongoing foreign exchange pressures and maintain monetary stability. National security officials also flagged risks surrounding anonymous capital flight and illicit financial flows.
Economic Balancing Act
While Binance has successfully reopened technical access to its platform through national telecom infrastructure, specific terms of the agreement remain undisclosed. Neither Binance nor Ethiopian officials have confirmed whether localized ETB fiat trading pairs will be permitted to return in the future.
The National Bank of Ethiopia continues to maintain that the Birr remains the nation’s sole legal tender, and the commercial use of digital currencies as a medium of exchange remains strictly prohibited.
This regulatory compromise arrives during a broader economic transition for Ethiopia. The government has embarked on a cautious liberalization program, opening select segments of its digital economy and financial sector to foreign investment. Simultaneously, the state has actively leveraged blockchain technology for state-backed enterprises, including major infrastructure investments in Bitcoin mining utilizing surplus hydroelectric power from the Grand Ethiopian Renaissance Dam (GERD).
The reversal of the network blockade signals a growing appetite among emerging markets to seek structural compromises with global virtual asset service providers (VASPs), prioritizing institutional oversight and compliance over total prohibition.
