REGULATION | Rwanda Draft Law Reportedly Proposes 5-Year Sentences, Over $70K in Fines for Unlicensed Crypto Trading

A draft law in Rwanda proposes prison sentences of up to five years and fines of up to about $72,000 for companies involved in illegal virtual asset trading, as the government moves to tighten oversight of the sector, according to local reporting.

Under the bill:

• individuals operating virtual asset businesses without a licence could reportedly face fines ranging from roughly $21,500 to $36,000 and prison terms of three to five years, while

• companies found operating without authorisation risk fines between about $36,000 and $72,000,

according to the draft legislation under parliamentary review.

The proposed law also targets unauthorised promotion of virtual assets:

• individuals advertising such services without a licence could face fines of approximately $3,600 to $7,200 and jail terms of six months to one year, while

• companies could be fined between about $7,200 and $14,400.

In addition,

• board members of licensed firms who provide false information or obstruct regulators could face fines of roughly $2,100 to $3,600 and prison sentences of six months to two years.

The Virtual Assets Business Bill, approved by Cabinet in March 2026 and currently being scrutinised by lawmakers, aims to regulate digital asset activities, protect investors and safeguard the financial system.

While the Act, which is yet to be passed, establishes general principles, implementing regulations after enactment outline technical and operational requirements for the sector. For Randa, the Capital Markets Authority will serve as the main regulator working alongside the National Bank of Rwanda (Central Bank of Rwanda).

Authorities say the legislation is intended to close regulatory gaps that have exposed the public to fraud, including pyramid schemes and fake digital coins, while aligning the country with international standards on financial oversight in a manner similar to traditional financial services.

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