Rwanda Capital Markets Authority (CMA) has outlined how upcoming virtual asset regulations will govern cryptocurrency trading, online forex platforms, and digital investment services. According to the regulator, the rules will require all virtual asset service providers and issuers to obtain licences before operating in the country. The regulations are expected to cover cryptocurrency exchanges, custodial services, token issuers, and other digital asset intermediaries. ALSO READ: Virtual assets law expected to boost digital finance Jerome Ndayambaje, Digital Innovation Analyst at the Capital Market Authority (CMA), clarified that not all crypto assets will automatically be allowed into the market. Instead, each asset will undergo individual assessment before approval. “We are not going to allow all the 9,000 cryptocurrencies that exist globally to operate automatically in Rwanda. Every virtual asset will be analysed independently before it is approved for listing or trading,” he said. ALSO READ: What are virtual assets and how do they work? “There are different categories of cryptos that include unbacked crypto assets such as Bitcoin and similar cryptocurrencies whose value depends largely on market demand and investor sentiment rather than tangible backing,” he explained. These assets, he added, are highly volatile and will face scrutiny before approval for trading. On the other hand, stablecoins and tokenised assets might not face extreme security as bitcoins. Ndayambaje highlighted that “Stablecoins, which are backed by assets such as fiat currencies or other reserves, are generally designed to maintain stable value by being pegged to underlying assets,” he said. “Under the upcoming rules, both issuers and service providers will face separate approval processes. Issuers seeking to launch a new virtual asset or list an already existing one in Rwanda will be required to submit detailed disclosures about the asset, including its risks, investor rights, ownership structure, and technical characteristics,” he said. Service providers to be licensed Authorities are also preparing to licence different categories of virtual asset service providers, including exchanges, custodians, brokers, and platforms facilitating conversion between traditional currencies and virtual assets. The framework is expected to set operational, compliance, and consumer protection requirements for each category. Ndayambaje observed that the law itself establishes broad principles, while detailed implementation requirements will appear in separate regulations currently being drafted. Until the regulations are finalised and licensed operators emerge, officials are advising Rwandans to avoid using unregulated offshore crypto platforms and peer-to-peer trading arrangements. “At the moment, if people lose money using unlicensed international platforms, there is no legal recourse for regulators to intervene because those entities are not licensed in Rwanda,” he said. “Once the regulations take effect, only licensed operators will be recognised as legitimate service providers, while conducting virtual asset business without authorisation could become a punishable offence under the law,” he said. The approach aims to balance innovation with investor protection as the country moves to formally regulate the rapidly growing digital asset sector. Users welcome move Some traders and digital asset users say the planned regulations could bring much-needed legitimacy and investor protection to Rwanda’s growing crypto ecosystem, although concerns remain about how restrictive the approval process could become. “For a long time, many Rwandans interested in crypto trading have been operating in uncertainty, using foreign platforms without knowing what protections exist if something goes wrong,” said Eric Mugisha, a Kigali-based cryptocurrency trader. “Having regulations and licensed operators could build more confidence and reduce scams, especially for young traders entering the market.” Mugisha also said that, at the same time, traders will be watching closely to see whether the approval process remains open to innovation and does not become too restrictive because the crypto market moves very fast globally.
