Africa-Press – Rwanda. Individuals operating virtual assets businesses without licences could face up to five years in prison and fines of up to Rwf50 million, while companies risk penalties of up to Rwf100 million under a draft law currently being scrutinised by Members of Parliament.
The draft Virtual Assets Business Bill, approved by Cabinet on March 4 and cleared for relevance by Parliament on March 31, seeks to regulate virtual asset activities while protecting investors and safeguarding the financial system.
Under the proposed law, any individual found operating a virtual assets business without a licence faces a fine ranging between Rwf30 million and Rwf50 million and a prison sentence of three to five years.
Companies operating without authorisation risk fines of between Rwf50 million and Rwf100 million.
The bill also targets unauthorised promotion of virtual assets. Individuals who market or advertise such services without a licence could face fines ranging from Rwf5 million to Rwf10 million and jail terms of six months to one year. Companies could be fined between Rwf10 million and Rwf20 million.
In addition, board members of licensed firms who provide false information or obstruct regulators face fines of between Rwf3 million and Rwf5 million, as well as prison sentences ranging from six months to two years.
According to the explanatory note, the law is intended to address regulatory gaps that have exposed the public to fraud. Data from the Rwanda Investigation Bureau (RIB) shows at least 35 cases linked to pyramid schemes and fake coins identified during a 2024 risk assessment, resulting in financial losses.
The absence of a legal framework has also made it difficult to monitor illicit financial activities, including money laundering and terrorism financing, often associated with anonymous and cross-border transactions.
The government aims to align Rwanda with international standards set by global financial watchdogs, including recommendations that virtual asset services be regulated in a manner similar to traditional financial services.
If enacted, the law is expected to close regulatory loopholes that criminals could exploit across borders, while positioning Rwanda as a safe destination for digital innovation and investment.
Jerome Ndayambaje, a digital innovation analyst at the Capital Market Authority, said the draft law will establish general principles, with detailed provisions to be defined in implementing regulations after enactment.
“The law provides all the principles, but we always draft implementing regulations after the act is passed,” he said, noting that these will outline technical and operational requirements for the sector.
Ndayambaje added that the regulations will also address the issuance of virtual assets, including how companies can introduce new assets or list those issued outside Rwanda, similar to primary market operations.
He said the Capital Market Authority will serve as the main regulator, working alongside the central bank to implement the framework.
In the process, he noted that the bill has undergone consultations with stakeholders, including industry players and regulators, beginning with a risk assessment in 2024, followed by policy development and drafting in 2025.
“We engaged extensively with industry players,” he said.
He added that engagement will continue, particularly during the development of implementing regulations, alongside public awareness efforts.
“We are engaging the public to let them know what is coming. Be ready, but be cautious about engaging with service providers before a full legal framework is in place,” he said.
Jean Pierre Bucyenyisenge, a forex mentor and CEO of PFXM, said some Rwandans currently engage with virtual assets informally.
“In Rwanda, most people using cryptocurrencies do so informally, mainly through peer-to-peer trading and international platforms such as Binance and OKX. For many, it’s about investment or sending money across borders more easily,” he said.
He noted that while adoption remains relatively low, virtual assets could support financial inclusion, reduce the cost of cross-border payments, and drive fintech innovation if properly regulated.
Parliament’s consideration of the draft law signals that virtual assets are now being taken seriously, he added.
“Without clear rules, users have faced scams, uncertainty, and a lack of protection. There has also been hesitation from banks and limited public trust.”
He said the law should prioritise licensing platforms, protecting users, establishing clear compliance rules, and addressing issues such as fraud and taxation.
On March 10, RIB spokesperson Thierry Murangira warned the public about scams linked to fake online coins and pyramid schemes.
“Some people invest Rwf50,000 and are promised returns of Rwf3,000 daily, only to lose their money later. People have heard such cases and ignored warnings, only to be scammed,” he said.
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