Rwanda has introduced a draft law to regulate virtual assets, aiming to provide legal clarity and oversight for the growing digital finance sector. The proposed regulations, released on 6 March, appoint the Capital Markets Authority (CMA) as the industry's main regulator and set out licensing requirements for businesses offering virtual asset services.

Authorities say the move addresses concerns from the Financial Action Task Force (FATF) over the potential use of virtual assets for money laundering. Carine Twiringiyamana, CMA's manager of licensing and approvals, emphasised that the framework is designed to mitigate risks while fostering innovation. The draft law confirms that virtual assets will not be recognised as legal tender, nor can they be used for payments within Rwanda.

The proposal also bans crypto mining, virtual asset cash machines, and mixer or tumbler services. Previously, the National Bank of Rwanda had warned financial institutions against engaging in crypto-related transactions, but regulators now hope that this framework will pave the way for safer industry development. Once approved, the CMA will take charge of oversight and fraud investigations, a role currently handled by the Rwanda Investigation Bureau.

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