Rwanda Cabinet Approves Draft Law to Regulate Virtual Assets
The law targets digital representations of value that can be traded or used for investment but does not include traditional currencies like the Rwandan Franc, US Dollar, or Euro.
The Republic of Rwanda Cabinet has approved a draft law to regulate virtual assets, aiming to create a clear and safe framework for the emerging sector. The law targets digital representations of value that can be traded or used for investment but does not include traditional currencies like the Rwandan Franc, US Dollar, or Euro.
The draft law addresses the growing adoption of virtual assets globally, recognizing both the opportunities for innovation and economic growth and the risks such as money laundering and financing illegal activities. It aligns with international standards set by the Financial Action Task Force (FATF) and is intended to protect Rwanda’s financial system while supporting responsible innovation.
Key points for the public:
- Virtual assets are not legal tender in Rwanda and cannot be used as official currency.
- Payments using virtual assets require explicit authorization by the National Bank of Rwanda to be valid.
Regulation of the sector will be overseen by the Capital Market Authority in collaboration with the National Bank of Rwanda. The guidelines will cover issuance, service provision, licensing, and supervision of virtual asset-related activities once the law is published in the Official Gazette.
