Rwanda Preparing to Regulate Cryptocurrencies: 'Cannot Get Rid of Them,' Says Governor

Rwanda is preparing to regulate cryptocurrencies in early 2025, the governor of the central bank has said.

Central Bank Head Warns of Unregulated Crypto

Rwanda is poised to implement regulations governing the use and trade of cryptocurrencies, according to John Rwangomba, governor of the National Bank of Rwanda (NBR). Rwangomba anticipates the regulations will be established in the first quarter of 2025, pending an agreement between the NBR and the Capital Market Authority (CMA).

This disclosure came in response to a lawmaker’s inquiry about the central bank’s stance on Bitcoin. While Rwangomba’s response did not explicitly endorse cryptocurrency, it marked a shift from the NBR’s previous public pronouncements.

Previously, the NBR, under then-acting governor Soraya Hakuziyaremye, directed banks to cease facilitating cryptocurrency-related transactions due to the unregulated nature of many crypto assets. This move, according to Hakuziyaremye, aimed to ensure “efficient and sound financial services.”

Rwangomba acknowledged the volatility concerns raised by his predecessors but also recognized that some have profited from cryptocurrency trading. He emphasized, however, that the lack of regulations governing cryptocurrency use continues to pose challenges for the central bank, necessitating a solution.

“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,” Rwangomba said.

Despite revealing plans to regulate cryptocurrencies, the NBR governor reportedly advised local residents to avoid dealing with them. However, he acknowledged that regulators “cannot get rid” of them, leaving regulation as the only tool Rwanda can use to control them.