Cryptocurrency is a virtual currency formulated to function as a medium of exchange. Cryptocurrencies evolvedrnon a blockchain altar that functions on a peer-to-peer foundation, enabling a beneficiary to receive encryptedrnpayments directly from sender. Cryptocurrency transactions disregard intermediaries such as banks and financialrninstitutions from the spiral. The role of financial intermediaries such as banks in guaranteeing the value of therncurrency is not needed in cryptocurrency transactions. Payments in the form of cryptocurrency are not usingrnsufficiently secure payment systems that are permitted by NBE. This shows that cryptocurrency companies arernnot licensed by NBE, thus cryptocurrencies are not regarded as payment systems in Ethiopia. Additionally, Givenrnthe anonymity attached to cryptocurrency payments, it is difficult if not impossible to trace back perpetratorsrninvolved in cryptocurrency payments or reverse the payment back to the consumer. Hence, the Trade Competitionrnand Consumer Protection Authority could face a challenge in the enforcement of consumerâ€™s right in case ofrncryptocurrency disputes. Because enforcing the provisions of TCCPP primarily requires identifying the offenders.rnFurthermore, NBE through the mechanism of receivership protects the rights of depositors in case banks arernunable to perform their duties. Nonetheless, because banks in Ethiopia do not issue cryptocurrency wallet, lawsrnthat are applicable in the protection of bank depositors are not applicable to cryptocurrency wallet depositors.rnTherefore, in case a cryptocurrency wallet provider fails to perform it duties or if a cryptocurrency is lost, NBErnwonâ€™t cover the loss.rnIn Ethiopia, no person shall transact banking business or provide digital financial services in without obtainingrna banking business license or digital financial services license or authorization from the national bank. However,rncryptocurrency exchangers in Ethiopia are accepting fiat money in exchange of cryptocurrency tokens and thisrnis clearly a digital financial service even if cryptocurrency is not accorded legal tender status in Ethiopia. Thusrncryptocurrency exchangers in Ethiopia are providing digital financial services without obtaining a digitalrnfinancial services license or authorization from the NBE.rnFurthermore, the narrow definition provided in the FITP for business income and taxable asset excluded thernapplicability of income tax proclamation on persons who earn income as a result of exchanging cryptocurrencyrnagainst fiat currency. Thus, the ministry of revenue is not collecting tax from such persons.rnLastly, the PPSMLFT by excluding actors involved in the activity of buying and selling cryptocurrencies, onlyrnobliges financial institutions and designated nonfinancial businesses or professions to keep records and reportrnto the FIC any suspicious transactions. Nevertheless, because cryptocurrency transaction is conducted withoutrnthe involvement of financial institutions or designated nonfinancial businesses or professions, FIC has no powerrnto oversight the activities of those involved in the cryptocurrency industry. In short actors of cryptocurrencyrnparticularly cryptocurrency exchangers and cryptocurrency wallet providers are out of the ambit of PPSMLFT.rnTherefore, the incapability of FIC in accessing data in relation to cryptocurrency transactions could be a majorrnhindrance towards the effective regulation of cryptocurrency related money laundering and terrorist financingrnactivities in Ethiopia.rnTherefore, in Ethiopia the relevant laws do not accord any legal recognition to cryptocurrencies and regulatorsrnwhich are entrusted to regulate cryptocurrencies are ignorant of the existing Ethiopian cryptocurrency market.