Rwanda approves draft law to regulate virtual assets
Rwanda’s Cabinet approved a draft law to regulate virtual assets, establishing a formal framework for the fast-growing digital asset sector.
Virtual assets will not be recognized as legal tender unless explicitly authorized by the National Bank of Rwanda.
The finance ministry said this is a major step toward creating a clear and safe framework for crypto and digital assets in the country.
Virtual assets are defined as digital representations of value that may be digitally traded or transferred and may be used for payment or investment purposes. They do not include digital representation of fiat currencies (such as Rwandan Franc, US Dollar, Euro..etc).
Virtual assets are being adopted rapidly around the world.
But while this presents opportunities for innovation and economic growth, it also carries significant risks, such as being used for money laundering or financing illegal activities, it said.
