Rwanda’s Lower Chamber of Parliament voted in favor of a major crypto bill. This marked its first step toward formal regulation of crypto trading and virtual asset activities in Rwanda.
However, the bill must be ratified by the President before it can be implemented. If approved, it will offer the Capital Market Authority primary powers, in conjunction with the National Bank of Rwanda, to regulate the crypto market. Further guidance will be developed on the daily operational aspects following the enactment of the law in detail.
Why It Matters
Rwanda is closer to legalizing a market that’s become much larger than the world’s financial markets. In his address to the House, Parliament’s Committee Chairperson Theogene Munyangeyo spotlighted how the virtual asset market has grown lately.
He said virtual assets are currently held by over 700 million people globally, of which over 70 million are transacting. In the global crypto market which is valued at about US$2.35 trillion, where Bitcoin owns a massive market share of 57.9%.
The stakes are real here and African countries are thus moving towards crypto adoption. It’s estimated that already 350,000 people use virtual assets in Rwanda.
In addition, the Rwanda Investigation Bureau has documented at least 35 cases of fraud and pyramid schemes so far. These schemes are operating since there is no supervisory authority, according to Munyangeyo.
“The lack of regulation can expose investors to fraud and scams that promise unrealistic returns,” he said.
What Penalties Does This Crypto Bill Impose In Rwanda?
The bill provides for a graduated penalty system in Rwanda. The penalties for those operating unlicensed virtual asset businesses range from Rwf30 million to Rwf50 million.
In addition, it imposes three to five years imprisonment in such cases. Moreover, it also provides provisions for combining both fines and prison time.
Further, the financial penalty for corporate entities that are not licensed in Rwanda is up to Rwf100 million. Additionally, the Capital Market Authority will be able to suspend or cancel operating licenses without any reference to criminal proceedings.
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Inside Two Years of Groundwork Behind The Vote
The Rwanda crypto bill’s process started as early as 2024 with a formal risk assessment. It continued with the drafting of the policy until 2025, said Jérôme Ndayambaje, a digital innovation analyst at the Capital Market Authority.
“We engaged extensively with industry players,” he said, according to The New Times report. He added that there are public awareness campaigns and additional stakeholder consultation scheduled before full implementation.
The law also establishes procedures for issuing and listing virtual assets, such as those that are not issued from Rwanda. Hence, the bill’s passage indeed acts as the cherry on the cake as Bitcoin is holding above US$81,000.
Also Read: Proposed South Africa Crypto Regulations Spark 1M Rand Fine Concern, Says VALR CEO
