In what seems to be a shift from the country’s previously cautious stance around virtual assets, Rwanda has taken a significant step towards regulation, after the cabinet approved a draft law.
The Ministry of Finance and Economic Development confirmed the move by the executive, led by President Paul Kagame.
According to the ministry, the proposed legislation aims to establish a clear and secure regulatory framework for virtual assets in Rwanda.
“Virtual assets are being adopted rapidly around the world,” the ministry said, on Thursday.
“While this provides opportunities for innovation and economic growth, it also carries significant risks, such as being used for money laundering or financing illegal activities.”
The ministry added: “The draft is designed to protect Rwanda’s financial system by managing these risks, while allowing for responsible innovation in the sector. It aligns with international standards set by the Financial Action Task Force (FATF).”
The FATF is an intergovernmental organisation founded in 1989 to set global standards for combating money laundering, terrorist financing and proliferation financing.
Although Rwanda has not been formally placed on the FATF ‘grey list’, the organisation has previously highlighted the country as being exposed to risks related to terrorist financing and urged stronger awareness of financial crime vulnerabilities.
Economic analyst Christopher Mugaga welcomed the move to regulate virtual assets, saying it could unlock new opportunities for the country’s digital economy.
“This can attract young talent, deepen online forex trading, options and EFTs as well as enhance other digital assets,” Mugaga said.
In 2025, the National Bank of Rwanda and the Capital Markets Authority announced plans to develop a regulatory framework for digital assets and related technologies.
The new legislation is expected to provide greater legal certainty for investors and innovators while protecting consumers and safeguarding Rwanda’s financial system.
Analysts say the move positions Rwanda among a growing number of African countries exploring regulated frameworks for cryptocurrencies and other digital assets as governments seek to balance innovation with financial security.
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