The Chamber of Deputies of Rwanda’s Parliament has passed a law regulating the trading of digital assets, commonly known as cryptocurrencies such as Bitcoin, which had previously been conducted informally and often led to cases of fraud.
The new law is expected to help prevent and reduce risks such as money laundering and terrorism financing through digital assets, while also protecting consumers from fraud and misleading promises of excessive returns.
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Parliamentary Findings on Crypto Fraud
During its review of the draft law, the Parliamentary Committee on Trade and Economic Affairs found that the Rwanda Investigation Bureau (RIB) had recorded 35 cases affecting numerous victims who had been defrauded through cryptocurrency-related activities.
In recent years, there have been multiple reports of individuals being lured into investing in online currencies with promises of high returns, only to lose both their expected profits and their initial investments.
Court Case Example
A recent example dates back to December 2025, when the High Council Court of Gasabo convicted Manzi Sezisoni Davis of illegal currency exchange and trading, fraud, and money laundering. He was sentenced to seven years in prison and fined RWF 11.3 billion (approximately $7.81 million). During the trial, Manzi stated that he began operating in the sector before any regulatory framework existed and claimed to have contributed to the development of the current legal provisions.
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Government Position
The Government of Rwanda noted that the law is principles-based, allowing flexibility, with detailed requirements to be defined through implementing regulations.
The legislation aims to mitigate risks such as money laundering and terrorism financing, while safeguarding both consumers and investors. This is particularly important given the volatile nature of digital assets, where investors often seek profits from price fluctuations, and the fact that many cryptocurrencies lack intrinsic value.
Market Integrity and Financial Stability
It also promotes integrity, transparency, and proper market conduct, helping to prevent fraud and the dissemination of misleading or incomplete information.
Additionally, the law seeks to ensure financial stability by addressing systemic risks arising from the growing interconnection between the cryptocurrency sector and the broader financial system.
Cybersecurity and Innovation
Furthermore, it will enhance cybersecurity, data protection, and operational resilience for digital asset platforms, while encouraging innovation in the sector.
Structure of the Cryptocurrency Market
The Chairperson of the Parliamentary Committee on Trade, MP Munyangeyo Theogene, emphasized that the law is necessary to regulate the rapidly growing cryptocurrency market.
He warned that without proper oversight, the sector could become a breeding ground for fraud, including scams conducted through fake investment platforms targeting unsuspecting investors.
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Global Cryptocurrency Overview
Globally, cryptocurrency is increasingly used as a medium of exchange, similar to traditional currencies, with over one billion users worldwide. More than 70 million people actively trade cryptocurrencies, and the global market value exceeds $2.35 trillion, with over 9,188 types of digital assets traded across more than 920 markets. Fraudulent platforms remain a concern, highlighting the need for strong regulatory mechanisms.
East African Adoption
In East Africa, cryptocurrency adoption continues to grow, with over four million users in Kenya, two million in Uganda, 1.5 million in Tanzania, and more than 350,000 in Rwanda.
According to the 2021 Chainalysis Crypto Adoption Index, Rwanda ranked 69th globally in cryptocurrency usage but later dropped to 142nd after the National Bank of Rwanda (BNR) urged caution in 2023.
Regulatory Oversight
The Capital Market Authority (CMA) has been mandated to oversee the sector, supervise service providers, and facilitate regulatory compliance. It will also issue licenses to both Rwandan and foreign entities wishing to operate in the market.
The law requires individuals and companies entering the cryptocurrency business to meet minimum capital requirements, which will be defined in implementing regulations. This aims to prevent situations where unqualified actors enter the market and cause losses to investors.
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Categories of Digital Assets
The law identifies three main categories of digital assets:
Stablecoins cryptocurrencies backed by specific assets or a basket of reserves, designed to maintain a stable value.
Tokenized assets real world or financial assets represented digitally using technologies such as blockchain.
Unbacked digital assets cryptocurrencies that are not backed by any underlying asset.
Tokenized assets must be fully backed (100%) and cannot be used as collateral for loans. They must also be securely held and separated from the owner’s personal assets. Public assets, infrastructure, and artistic works that cannot be reliably valued are excluded from tokenization.
Persistent Risks
The law acknowledges potential challenges associated with cryptocurrencies, including:
Anonymity and pseudonymity, which can obscure identities in transactions
Cross-border transfers that may facilitate illegal financial flows
Regulatory arbitrage and non-compliance across jurisdictions
Weak anti-money laundering and counter-terrorism financing measures among some service providers
Despite these risks, the law establishes a regulatory framework emphasizing transparency, security measures, and consumer protection to build trust in the market.
It also aligns with international standards and promotes global cooperation in combating cross-border financial crimes, while supporting public education and capacity building.
These measures are expected to strengthen Rwanda’s digital economy, expand financial inclusion, and ensure no citizen is left behind.
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Central Bank Digital Currency Development
The law comes shortly after the National Bank of Rwanda announced in early February 2026 that it had completed a pilot “Proof of Concept” for a Central Bank Digital Currency (CBDC), known as the e-Rwandan Franc (e-FRW).
Strict Penalties
Cryptocurrency service providers are required to operate transparently, protect client interests, and ensure data and asset security.
The CMA will conduct regular oversight, with licensed operators required to submit activity reports at least every three months.
Individuals operating without a license face fines ranging from RWF 30 million to RWF 50 million and prison sentences of three to five years, or both.
Companies operating without authorization may be fined between RWF 50 million and RWF 100 million.
Unauthorized promotion, advertising, or endorsement of cryptocurrency activities is also a criminal offense, punishable by fines ranging from RWF 5 million to RWF 10 million and imprisonment of six months to one year, or both.
Additional sanctions include warnings, temporary suspension, or permanent revocation of licenses for entities that fail to protect consumer interests. These penalties may be applied alongside other criminal sanctions under Rwandan law where applicable.
