A cabinet meeting chaired by President Paul Kagame, on Wednesday, March 4 approved a draft law to regulate virtual assets, marking a significant step toward establishing a clear framework for cryptocurrencies and other virtual assets in the country. In a statement released on Thursday, the Ministry of Finance and Economic Planning said the proposed law is intended to create a safe and transparent environment for the emerging sector while protecting consumers and investors. “The law is designed to protect consumers and investors by promoting market integrity and fair practices,” the statement reads. ALSO READ: Rwanda moves to regulate virtual assets with new draft law The Cabinet decision builds on earlier regulatory steps taken by financial authorities. In November 2024, the National Bank of Rwanda (BNR) announced plans to establish regulations governing the use and trading of cryptocurrencies. In March 2025, BNR, together with the Capital Market Authority (CMA), introduced a draft regulatory framework for virtual assets and virtual asset service providers. The initiative was aimed at providing oversight of digital financial transactions and ensuring the sector develops in a responsible manner. According to the finance ministry, virtual assets are defined as digital representations of value that may be digitally traded or transferred and may be used for payment or other purposes. However, the ministry clarified that virtual assets do not include digital representations of fiat currencies such as the Rwandan franc, the US dollar, or the euro. “This new law aims to create a clear and safe framework for this emerging sector,” the ministry said. The ministry added that the law will help provide regulatory clarity, boost innovation, and position Rwanda as a forward-thinking digital hub. Addressing risks in the sector While virtual assets are gaining global popularity and presenting new economic opportunities, the ministry noted that they also pose risks, including money laundering and other forms of illegal financial activities. “The draft law is designed to protect Rwanda’s financial system by managing risks, while allowing for responsible innovation in the sector,” the statement reads. ALSO READ: Rwanda central bank considering cryptocurrency regulation It also noted that the draft law aligns with international standards established by the Financial Action Task Force (FATF), which guides global efforts to combat money laundering and terrorist and proliferation financing. Virtual assets not legal tender Despite the regulatory progress, the ministry emphasized that virtual assets are not recognized as legal tender in Rwanda. ALSO READ: Central bank reaffirms validity of coins amid public complaints This means they cannot be used as a direct means of payment unless explicitly authorized by the National Bank of Rwanda. Once the law is enacted and officially gazetted, BNR and the Capital Market Authority will provide detailed regulations governing the sector. “These guidelines will govern how virtual assets are issued, who can provide related services, and how those service providers will be licensed and supervised,” the statement emphasized.
