REGULATION | Rwandan Parliament Unanimously Passes Law Regulating Virtual Assets and Cryptocurrencies

Rwanda has passed a sweeping law to regulate virtual assets and cryptocurrencies becoming one of the latest African countries to formalize oversight of the fast-growing digital asset sector amid rising crypto adoption across the region.

The legislation, approved by Rwanda’s lower chamber of parliament earlier this month, establishes the country’s first comprehensive legal framework governing virtual asset businesses, including cryptocurrency trading platforms and other digital asset service providers.

Under the new framework, companies offering virtual asset services will be required to obtain licenses from Rwanda’s Capital Markets Authority before beginning operations. The law also introduces measures aimed at curbing

• money laundering,
• terrorism financing, and
• online financial fraud

tied to digital assets.

Lawmakers said the move was intended to balance innovation with investor protection as crypto usage expands in Rwanda and across East Africa.

“The law aims to establish a secure and reliable regulatory framework,” Rwanda’s parliament said, adding that it would help protect citizens from fraudulent investment schemes and fake crypto platforms.

The bill follows years of caution from the National Bank of Rwanda which had previously warned about the risks associated with cryptocurrencies including volatility and fraud. In late 2024, the central bank said it was working with regulators to develop formal crypto rules.

Rwandan lawmakers estimate that about 350,000 people in the country currently use virtual assets while crypto adoption has accelerated across neighboring Kenya, Uganda, and Tanzania.

The law also introduces penalties for unlicensed operators. Draft provisions reviewed by lawmakers proposed prison terms of up to five years and fines reaching 100 million Rwandan francs ($70,000) for illegal virtual asset activities.

The legislation now awaits presidential assent and publication in the official gazette before taking effect after which regulators are expected to issue detailed operational guidelines for the sector.

Stay tuned to BitKE for updates on regulatory developments across Africa. 

Join our WhatsApp channel here.

Follow us on X for the latest posts and updates

Join and interact with our Telegram community

_________________________________________