Chamber of Deputies of Rwanda has approved a new law regulating cryptocurrency trading, including digital assets such as Bitcoin, which had previously operated without a proper legal framework in Rwanda. The legislation is intended to reduce risks related to money laundering, terrorism financing, fraud, and misleading investment schemes while also protecting consumers and investors involved in the growing digital asset market.
The law follows a series of cryptocurrency-related fraud cases investigated by the Rwanda Investigation Bureau (RIB), which reportedly received 35 complaints linked to scams in the sector. One of the most notable cases involved Manzi Sezisoni Davis, who was convicted in December 2025 for illegal currency trading, fraud, and money laundering. During his trial, he argued that he began operating before regulations existed and later contributed to discussions aimed at establishing a legal framework for the industry.
Under the new law, the Capital Market Authority Rwanda (CMA) has been given responsibility for regulating cryptocurrency activities and issuing licenses to both local and foreign operators. Individuals and companies wishing to engage in cryptocurrency business will now be required to meet capital requirements and obtain official authorization before operating. The legislation also obliges service providers to ensure transparency, customer protection, cybersecurity, and compliance with anti-money laundering regulations.
The government says the law is designed to support innovation while ensuring financial stability and market integrity. Authorities believe it will help prevent fraudulent investment schemes, improve oversight of digital asset platforms, and increase public confidence in the sector. Rwanda also intends to align its regulations with international standards and strengthen cooperation with foreign institutions in combating cross-border financial crimes.
The legislation recognizes three categories of digital assets, including stablecoins backed by reserves or traditional assets, tokenized real-world assets using blockchain technology, and unbacked cryptocurrencies. However, the law prohibits the tokenization of state property, public infrastructure, and certain assets that cannot easily be assigned a clear monetary value.
Officials also acknowledged that concerns remain over anonymity in cryptocurrency transactions, illegal cross-border transfers, cybercrime risks, and weak anti-money laundering systems among some operators. Despite these risks, the government believes the regulatory framework will create a safer and more transparent environment for cryptocurrency trading in Rwanda.
The law comes shortly after the National Bank of Rwanda announced the successful completion of a pilot project for a Central Bank Digital Currency known as the e-Rwandan Franc (e-FRW). Authorities say the broader goal is to build a stronger technology-driven economy while promoting financial inclusion and protecting citizens from fraud.
The penalties under the law are severe. Individuals operating cryptocurrency businesses without authorization could face prison sentences of between three and five years, along with fines ranging from 30 million to 50 million Rwandan francs. Companies operating illegally may be fined between 50 million and 100 million Rwandan francs. The law also punishes unauthorized promotion or advertising of cryptocurrency-related services, while regulators have the power to suspend or permanently revoke licenses of companies that fail to protect consumers.
