Rwanda has taken a step toward regulating cryptocurrencies and other digital assets, with the country’s Lower Chamber of Parliament approving a draft law governing virtual assets to protect both consumers and traders.
The proposed legislation, passed in early May, introduces a legal framework for virtual asset activities, including cryptocurrency trading, issuance, marketing, and related services. The law still awaits presidential assent and publication in the Official Gazette before it comes into force.
The move places Rwanda among a growing number of African countries seeking to balance innovation in digital finance with concerns around fraud, money laundering, and investor protection.
The draft law would place the sector under the supervision of the Capital Market Authority, working alongside the National Bank of Rwanda.
According to figures presented to Parliament, Rwanda is estimated to have around 350,000 virtual asset users, compared to approximately 4 million in Kenya, 2 million in Uganda, and 1.5 million in Tanzania.
The law aims to establish licensing requirements for companies operating in the sector while criminalizing unlicensed activities, including illegal crypto trading services, unauthorized issuance of virtual assets, and unregulated promotion or advertising.
Under the proposed framework, individuals operating virtual asset businesses without authorization could face fines ranging from Rwf30 million ($20,000) to Rwf50 million ($34,000), prison terms of up to five years, or both. Companies found operating without licenses could face penalties of up to Rwf100 million (68,000).
The legislation also targets activities such as illegal crypto ATMs, mining operations, mixer services, and false reporting to regulators.
Officials argue that the regulation is intended not to ban cryptocurrencies, but to create safeguards around a market that is already growing informally.
Digital innovation analyst Jérôme Ndayambaje said the law establishes broad principles while detailed regulations will be developed later to guide implementation, licensing, compliance, and oversight.
“We engaged extensively with industry players,” he said, noting that consultations began in 2024 through risk assessments and policy discussions before drafting started in 2025.
The development reflects a wider trend across Africa, where governments are increasingly moving from outright caution toward regulated engagement with crypto-related technologies.
Across the continent, cryptocurrencies have gained traction partly due to high remittance costs, currency volatility, limited access to traditional banking services, and growing digital connectivity among young populations.
Countries such as Nigeria, South Africa, Kenya, and Mauritius have all explored varying forms of crypto regulation in recent years, ranging from taxation frameworks to licensing requirements for exchanges and service providers.
In Rwanda, authorities say regulation could support innovation and attract investment while reducing exposure to fraud and financial crime.
Parliament heard that the Rwanda Investigation Bureau had recorded at least 35 cases linked to fraudulent schemes and pyramid schemes involving virtual assets.
Officials also warned about the risks posed by the extreme volatility of cryptocurrencies and the potential impact on the broader financial system if adoption expands without safeguards.
Still, policymakers see potential economic opportunities if the market is properly regulated.
Munyangeyo told lawmakers that virtual assets could support faster, cheaper cross-border payments, improve liquidity through the tokenization of assets, encourage financial innovation, create jobs, and generate tax revenue.
The proposed law comes as Rwanda continues positioning itself as a regional technology and financial innovation hub, with government-backed investments in fintech, digital public infrastructure, and cashless payment systems forming part of the country’s broader digital transformation agenda.
