In a decisive pivot after years of financial caution, the Parliament of Rwanda has unanimously adopted a landmark law to legalize and regulate cryptocurrencies and other virtual assets. The legislation marks a major strategic shift, creating a formal framework that allows investors, fintech firms, and financial institutions to operate within a regulated digital economy.

The bill passed during a lively joint session of Deputies and Senators, securing 69 votes in favor and zero abstentions. It establishes Rwanda’s first comprehensive legal framework governing activities involving digital currencies and tokenized investments, effectively transitioning a sector that had long been restricted or treated as unlawful into a space governed by clear rules.

The legislative move follows a March 2026 Cabinet decision aimed at reducing the risks created by an unregulated market. Under the previous stance of the National Bank of Rwanda, digital currencies were considered illegal, a position championed by former Governor John Rwangombwa, who cited concerns about volatility and fraud risks. Lawmakers say this “gray market” contributed to at least 35 documented fraud cases, including pyramid schemes disguised as crypto opportunities, reportedly leaving thousands of victims.

Parliament estimates that more than 35,000 people are currently trading virtual assets, including both Rwandans and expatriates. The new law is designed to bring these participants into the formal economy. Théogène Munyangeyo, Chairperson of the Parliamentary Committee on Economy and Trade, said this is the moment to integrate informal dealers into a regulated system, not only to incorporate them into the economy but also to provide victims of online scams with a legal shield.

The framework shifts primary oversight to the Capital Market Authority (CMA) Rwanda, while the National Bank and the CMA will maintain close coordination. Under the new rules, service providers must obtain official licenses and meet strict transparency and operational standards. The law also introduces the tokenization of physical assets, allowing tangible property to be converted into digital tokens.

During committee discussions, MPs raised concerns about valuation integrity and possible regulatory overlap. Germaine Mukabalisa and Valens Muhakwa questioned how pricing would be protected and which bodies would oversee different parts of the process. The committee responded that issues would be managed through existing penal codes and established oversight mechanisms. The law also makes quarterly reporting mandatory and requires strong Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) protocols for all operators.

To deter wrongdoing, the legislation sets heavy penalties for noncompliance. Companies offering virtual asset services without a license may face fines ranging from Rwf 70 million to Rwf 100 million. Unauthorized issuance of digital assets could attract penalties reaching Rwf 150 million. The law also addresses individual misconduct, including unauthorized mining, unauthorized payments, and the use of anonymizing services such as “mixers,” which can result in fines up to Rwf 30 million and prison sentences of up to three years.

This milestone aligns with Rwanda’s ambition to become Africa’s leading fintech hub. By choosing regulation instead of prohibition, Rwanda joins a growing group of countries aiming to benefit from digital innovation while protecting financial stability. Once promulgated and published in the Official Gazette, the law is expected to provide the legal certainty needed to attract institutional investment and unlock new frontiers in digital financial services, beginning what lawmakers describe as a sophisticated new chapter in Rwanda’s innovation-driven economy.