Cryptocurrency Regulation in Djibouti Prior to 2024

As of the period leading up to 2024, the legislative landscape for cryptocurrencies in Djibouti was characterized by a significant lack of specific regulations. This absence of clear legal guidelines created an uncertain environment for the use and trade of digital currencies.

Unclear Legal Status

In Djibouti, the legal status of cryptocurrencies, including popular ones like Bitcoin, Ethereum, and others, remained undefined. The government had not issued any specific laws or regulations regarding the use, trading, or mining of these digital currencies. This lack of regulation created a grey area for users and traders of cryptocurrencies in the country, where they operated without specific legal guidance​​.

Application of General Financial Laws

Despite the absence of dedicated cryptocurrency regulations, general financial laws were still applicable in Djibouti. This meant that while trading and owning cryptocurrencies was not illegal per se, any illegal activities associated with cryptocurrency, such as fraud, money laundering, and tax evasion, were punishable under existing financial laws. Penalties for such offenses could include fines or imprisonment. The responsibility for monitoring and investigating suspicious financial activities, including those related to cryptocurrency, fell on Djibouti’s financial regulatory body​​​​.

Cryptocurrency Trading and Gambling

Cryptocurrency trading in Djibouti was not governed by specific laws, but it was not considered illegal. However, traders were advised to exercise caution and ensure compliance with existing financial laws and regulations to avoid potential legal issues. Similarly, while there were no specific laws addressing cryptocurrency gambling, general gambling laws were likely applicable. Individuals engaged in cryptocurrency gambling were advised to proceed with caution and ensure compliance with all relevant laws and regulations​​​​.

Popularity of Cryptocurrencies

In terms of popularity, Bitcoin and Ethereum were the most recognized and used cryptocurrencies in Djibouti, in line with their global standing. Other digital currencies like Litecoin, Dogecoin, and Monero also had a presence, albeit to a lesser extent​​.

In summary, prior to 2024, Djibouti’s approach to cryptocurrency was marked by a lack of specific legal frameworks, leaving the market largely unregulated. The onus was on individuals and businesses to navigate this space, adhering to general financial laws while being aware of the risks involved in the absence of targeted cryptocurrency regulations.