INSA wants to register Ethiopia-based crypto service providers
Ethiopia’s Information Network Security Administration (INSA) has announced its openness to new crypto service providers, that are willing to enter the market.
The bureau has asked interested service providers to fill a registration form via its website with in 10 consecutive working days after August 21. In its statement, the bureau quoted Article 6 (9) of the Re-establishment proclamation 808/06. The article gives INSA the power to “regulate and control cryptographic products and their transaction, set necessary criteria and develop operating procedures…”.
Back in June, the National Bank of Ethiopia had said that it does not recognize cryptocurrency as a legitimate method of payment. It also advised citizens to not participate in transactions that involve digital currencies. To many, it seemed as if Ethiopia was closing its doors to the crypto world. This invitation from INSA comes as a surprise to all. It will be interesting how the National Bank will address this new development.
It is evident that the National Bank had its concerns regarding this market. Since the dawn of its creation, the concept of digital money has been a fairly controversial one. Especially for governing bodies, a decentralized and unregulated currency poses a real threat to their place in the modern economic world.
Bitcoin and other similar currencies offer their users high level of anonymity. One concern for governments is the fact that many illegal transactions take place in these spaces. No central body has been virtually able to regulate and control these transactions due to the high level of protection each transaction is layered with. Hence, it is understandable for governing bodies like the National Bank to have concerns.
But cryptocurrencies are not without their benefits. One of the main reasons for their popularity is their ability to resist inflation. Even though in recent times there has been some dips in value for some of the most popular coins, most have succeeded in beating inflation for the majority of the last decade. The high level security blockchain technologies provide is also another attraction. Bitcoin, for example, has over 180 million users.
It will be interesting to see which service providers are willing to set foot in Ethiopia’s market, following the invitation from INSA. And off course, the terms of agreement between the parties is going to be essential as to how this will work in the end.
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