With an estimated 350,000 citizens already navigating the digital currency space, the Rwandan Parliament has passed a sweeping law to regulate virtual assets and cryptocurrencies, becoming the latest African nation to establish a comprehensive legal framework for the sector.
- With an estimated 350,000 citizens already navigating the digital currency space, the Rwandan Parliament has passed a sweeping law to...
- The legislation, recently approved by the lower chamber of the Rwandan Parliament, criminalises unlicensed operations and imposes strict anti-money-laundering measures.
- What to expect with the new virtual assets law Under the new framework governing virtual assets and cryptocurrencies, any company wishing...
- Why did the Rwandan Parliament act now?
Keep reading for the full breakdown on Bitcoin — everything you need to know is covered below.
The legislation, recently approved by the lower chamber of the Rwandan Parliament, criminalises unlicensed operations and imposes strict anti-money-laundering measures.
The new law now awaits presidential assent before it officially takes effect.
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What to expect with the new virtual assets law
Under the new framework governing virtual assets and cryptocurrencies, any company wishing to operate must first obtain a license from Rwanda’s Capital Markets Authority (CMA).
They designed the rules to separate legitimate businesses from fraudulent schemes targeting inexperienced investors.
“The lack of regulation can expose investors to fraud and scams that promise unrealistic returns,” warned MP Theogene Munyangeyo, Chairperson of the Parliamentary Committee on Economy and Trade, during the bill’s presentation.
Therefore, anyone operating a virtual asset business without authorisation will face a term of three to five years in prison and fines of up to Rwf50 million, while corporations will get fines of up to Rwf100 million for running unlicensed services.
Why did the Rwandan Parliament act now?
The authorities in the country recorded at least 35 fraud cases linked to pyramid schemes and cryptocurrency scams through the Rwanda Investigation Bureau. The law specifically targets money laundering, terrorism financing, and online financial fraud involving digital assets.
The new rules do not give a free pass to all digital currencies. Jerome Ndayambaje, a Digital Innovation Analyst at CMA, confirmed that not every asset will be allowed.
“We are not going to allow all the 9,000 cryptocurrencies that exist globally to operate automatically in Rwanda,” Ndayambaje said. “Every virtual asset will be analysed independently before it is approved for listing or trading”.
The country has now joined a growing list of African nations moving to formalise oversight of the fast-growing digital asset sector.