---
type: country
domain: crypto-regulation
status: stable
tags: ["crypto-regulation", "africa_east", "esaamlg", "banned"]
aliases: ["ER", "ERI", "ኤርትራ"]
created: 2026-04-13
updated: 2025-01-01
compile_into: ["[[country--eritrea]]"]
sources:
  - name: "Bank of Eritrea"
    url: "https://www.boe.gov.er"
    type: "official"
---

# 🇪🇷 [[country--eritrea|Eritrea]] (ER) — Crypto Regulation

> Eritrea has an effectively closed financial system. Cryptocurrency use is not permitted. The government maintains strict capital controls and foreign currency regulations.

## Overview

| Field | Value |
|-------|-------|
| Status | Banned |
| Risk Score | 95/100 (Very High Risk) |
| Enforcement Level | High |
| Region | [[domain--africa|africa east]] |
| Currency | [[entity--ern|ERN]] |

## Tax

| Type | Rate |
|------|------|
| Capital Gains (Personal) | N/A |
| Capital Gains (Corporate) | N/A |
| VAT on Crypto | No |
| Mining Tax | N/A |
| Staking Tax | N/A |
| Airdrop Tax | N/A |

Crypto is not permitted.

## Licensing

| Field | Value |
|-------|-------|
| Required | No |
| Regulator | [[entity--bank-of-eritrea|Bank of Eritrea]] |
| Framework | No crypto framework; effectively banned |
| Ease | N/A |
| Cost | N/A |
| Timeline | N/A months |

Crypto is not permitted. Eritrea maintains strict financial controls.

## AML / KYC

| Field | Value |
|-------|-------|
| KYC Required | Yes |
| Travel Rule | No |
| FATF Member | No |
| FATF Status | non_compliant |

## DeFi

**Status:** Banned

Not permitted.

## Stablecoins

**Status:** Banned

Not permitted.

## NFTs

**Status:** Banned

Not permitted.

## Mining

| Field | Value |
|-------|-------|
| Legal | No |
| Electricity Cost | $0.08/kWh |
| Renewable Energy | 35% |
| Climate | arid |
| Infrastructure | poor |

Crypto mining is banned in Eritrea. Electricity cost is relatively high at $0.08/kWh with moderate renewable energy share. Infrastructure for mining is poor due to limited data center and internet facilities.

## Geopolitics

| Field | Value |
|-------|-------|
| Stability | stable |
| Sanctions | Yes |
| Corruption Index | 16/100 |
| Ease of Business | very_difficult |
| Internet Freedom | not_free |
| Banking Access | very_restricted |

## Enforcement

Strict financial controls enforced.

## CBDC Status: none

---

*Data source: [Soken Crypto Legal Map](https://soken.dev/crypto-map/). Last reviewed: 2026-04-13.*

**Sources:**
- [Bank of Eritrea](https://www.boe.gov.er)