In a joint announcement, the Rwanda Capital Markets Authority (CMA) and the National Bank of Rwanda are asking members of the public for comments on a draft law Regulating Virtual Assets Business in Rwanda.
“In adherence to best practices that call for public participation, we invite all interested individuals and stakeholders – including fintech experts, legal practitioners, bankers, payment industry and financial market participants, consumers, and investors – to review the draft law and provide their feedback.” said the statement.
The draft law was made public on March 6 2025 to gather public feedback and promote transparency in the regulatory process. It can be accessed via this link.
Comments should be submitted by March 14 2025 through [email protected]
In addition to the written comments, CMA and NBR will host a virtual consultation meeting on March 17 2025 from 10:00AM and below is the virtual meeting link https://zoom.us/j/97709425500?pwd=KiNoKqu1LuoUGBluHaM1G1lQZcjQat.1
The draft law places virtual assets and virtual asset service providers (VASPs) under the regulatory oversight of the Capital Markets Authority of Rwanda (CMA Rwanda), which will establish the licensing requirements for VASPs.
However, the regulation emphasizes that cryptocurrencies are prohibited as legal tender within the country. In 2023, as reported by BitKE, the National Bank of Rwanda issued a public warning to residents not to be involved in cryptocurrencies citing several risks including the volatility of the assets.
Additionally, the law imposes a ban on:
- Crypto mining
- Crypto automated teller machines (ATMs), and
- VASPs offering mixing services
It also outlines regulations for the issuance of Initial Coin Offerings (ICOs), tokenized real-world assets, and stablecoins.
Furthermore, the regulatory framework mandates the enforcement of the ‘travel rule’ among licensed VASPs and regulators. This requires cryptocurrency exchanges to collect and share information about individuals involved in cryptocurrency transactions.
Operators of unlicensed VASPs in the country face significant penalties, including fines of up to 30 million Rwandan francs (around $21,000) and potential imprisonment for up to five years.
Carine Twiringiyimana, the Manager of Licensing and Approvals at CMA Rwanda, highlighted that a major concern raised by the Financial Action Task Force (FATF), the global body overseeing money laundering and terrorist financing, is the possible misuse of virtual assets for money laundering.
“The Financial Action Task Force is particularly worried that virtual assets could serve as a means for money laundering. This is why these regulations are being implemented – to reduce such risks and offer clear guidance to both the public and virtual asset service providers,” she said.
