Rwanda to establish crypto regulations in 2025 — NBR

The governor of the National Bank of Rwanda (NBR), John Rwangombwa, has said that the bank is making plans to regulate the use of cryptocurrencies in the country. The regulations may come into place as early as the first quarter of 2025.

The details 

• Per reports in Rwandan media, Rwangombwa made this known while presenting the NBR’s annual report to the country’s parliament. 
• He said that the NBR is partnering with the Capital Markets Authority in Rwanda to establish a crypto regulatory framework, but it is in no hurry because only a few countries in the world have crypto regulations in place. 
• When quizzed on the apex bank’s position on the increased use of bitcoin and other cryptocurrencies in the country, Rwangombwa said the NBR cannot get rid of the asset class. 
• Instead, the bank can make rules to govern its use within Rwandan borders and advise its citizens to avoid dealing with any crypto in the absence of clear regulations, he added. 

Key quotes 

• Rwangombwa said: 

“What we are doing, in partnership with the Capital Market Authority, based on what is being done at the international level, is to put in place regulations governing what we call virtual assets which can be traded in our country.” 

• He added: 

“We cannot get rid of [cryptocurrencies]. So, it was necessary that we set up laws and regulations governing their functioning in the country.” 

Before now 

• In 2018, the NBR declared cryptocurrencies illegal and warned that any Rwandan that trades crypto does so at their own risk. 
• However, the bank’s executive director for financial stability, Peace Masozera, projected that the country could issue a central bank digital currency, which is being worked on. 
• Last year, Mariblock reported that Rwandan officials arrested and prosecuted a former government official, Aimable Nkuranga for advertising investments in a cryptocurrency, BITSEC.