Cryptocurrency legislation takes shape in Rwanda
Rwanda is taking a significant step towards regulating the use of cryptocurrencies within its borders. The Capital Markets Authority (CMA) and the National Bank of Rwanda (NBR) are collaborating to develop and enforce a new regulatory framework specific to virtual assets.
Until now, cryptocurrencies in Rwanda have been unregulated, and transactions involving digital currencies were officially banned. However, the new regulations aim to provide legal clarity and align with international standards.
The regulations classify cryptocurrencies as intangible assets, similar to stocks or bonds, making transactions subject to capital gains tax. Individuals are subject to a 15% capital gains tax on profits from selling or exchanging virtual assets, while companies face a 30% corporate income tax on virtual asset profits. Income generated from cryptocurrency mining is also taxable as part of overall income.
The regulatory framework does not currently impose restrictions on leverage nor require trading exclusively through local exchanges. However, it mandates the enforcement of the travel rule among licensed Virtual Asset Service Providers (VASPs) and regulators, requiring exchanges to collect and share information on individuals that transact with cryptocurrencies.
The new law bans crypto mining activities, crypto ATMs, and VASPs providing mixing services in the country. Operators of unlicensed VASPs risk paying up to 30 million Rwandan francs ($21,000) in fines and up to five years in jail.
Last year, the governor of the NBR, John Rwangombwa, announced that the bank was working on crypto regulations that could come into effect as early as the first quarter of the year. This announcement follows the CMA's licensing and approvals manager, Carine Twiringiyimana's statement that the passing of the law was motivated by the Financial Action Task Force's warning on the money laundering risks posed by cryptocurrencies.
While the specific licensing, operational, or custodial requirements for VASPs by CMA or NBR have not been fully detailed, the focus is on developing a comprehensive framework that will likely include these aspects as part of regulatory best practices.
It is worth noting that the initiative is still under development as of the first quarter of 2025, with enforcement and full details expected to formalize soon. The overall goal is to integrate digital assets into Rwanda’s formal financial and economic system, ensuring tax compliance and financial system stability.
In summary, the new regulations emphasize taxation, risk management, legal clarity, and alignment with international best practices but are still evolving with the final specifics yet to be published and enforced. [1]
[1] Traders Union, July 2025 update on Rwanda crypto regulations.
- The regulations in Rwanda have classified cryptocurrencies as intangible assets, subjecting their transactions to capital gains tax.
- Individuals in Rwanda will be liable for a 15% capital gains tax on profits from selling or exchanging virtual assets, while companies face a 30% corporate income tax on virtual asset profits.
- The regulatory framework in Rwanda mandates the enforcement of the travel rule among licensed Virtual Asset Service Providers (VASPs) and regulators, requiring exchanges to collect and share information on individuals that transact with cryptocurrencies.
- Operators of unlicensed VASPs in Rwanda risk paying up to 30 million Rwandan francs ($21,000) in fines and up to five years in jail.
