The National Bank of Rwanda and the Capital Market Authority have proposed a regulatory framework for virtual assets, aiming to govern digital transactions, prevent money laundering, and enhance public guidance. The draft law prohibits the use of tokens representing Rwandan currency and promotes legal clarity in trading operations. Traders express support for the regulations, seeking to mitigate fraud and establish a secure trading environment.
The National Bank of Rwanda (NBR) and the Capital Market Authority (CMA) have introduced a draft regulatory framework directed at virtual assets and service providers, marking a significant step towards regulating digital financial transactions in Rwanda. Virtual assets, defined as digital representations of value for trading, transferring, and payment, are recognized as vital in the capital market, with this framework promoting innovation while addressing risks such as money laundering and terrorist financing.
The proposed regulations aim to align with findings from the Financial Action Task Force, focusing on preventing the misuse of virtual assets for illicit activities. Carine Twiringiyimana, CMA Manager of Licensing and Approvals, stated that clear regulations are essential to mitigate these risks and guide the public and virtual asset service providers accordingly. The law’s introduction is intended to promote transparency in the regulatory process, as it was released for public opinion on March 6.
A notable point of the draft law is the prohibition of using tokens to represent the Rwandan currency, protecting against manipulation of virtual assets. Twiringiyimana underscored that the regulations seek to establish legal clarity for digital currencies and real-world asset tokenization, ensuring that transactions are safe, transparent, and regulated. This comprehensive legal framework is designed to protect both buyers and sellers in the virtual asset market.
Traders have welcomed the regulatory proposals. Gaspard Nsekambabaye, a crypto trader, expressed optimism that regulation will reduce scams, noting that buyers often send money without receiving cryptocurrencies, resulting in significant losses. The establishment of a registration system for sellers is seen as a vital measure to combat fraud. Twiringiyimana added that affected individuals could seek help from the Rwanda Investigation Bureau (RIB), which will gain enhanced authority to manage financial crimes related to virtual assets once regulations are approved.
The new framework will clarify rules for virtual asset trading, fostering a transparent environment where CMA will oversee compliance and licensing of service providers, effectively regulating virtual asset operations in Rwanda.
The draft regulatory framework by the National Bank of Rwanda and the Capital Market Authority represents a significant stride toward the governance of virtual assets in Rwanda. By introducing clear regulations and definitions, the framework aims to introduce legal clarity and prevent potential fraud in the virtual asset market, protecting both buyers and sellers. There is a collective optimism among traders regarding the proposed regulations, highlighting the need for a secure trading environment that discourages illicit activities and ensures accountability within the market.
Original Source: www.newtimes.co.rw
