Rwanda Introduces Severe Penalties for Unlicensed Crypto Trading

Rwanda's government is taking steps to tighten control over the cryptocurrency market by introducing a draft law that imposes severe penalties on unlicensed crypto trading.

The proposed legislation, currently under parliamentary review, stipulates prison sentences of up to five years and fines of up to $72,000 for companies involved in unauthorized virtual asset trading.

Individuals operating without a license could face fines ranging from approximately $21,500 to $36,000 and jail terms of three to five years. Companies found operating without authorization risk fines between about $36,000 and $72,000.

The bill also targets unauthorised promotion of virtual assets by imposing fines on individuals and companies who advertise such services without a license.

The Virtual Assets Business Bill aims to regulate digital asset activities, protect investors, and safeguard the financial system in Rwanda. The legislation is intended to close regulatory gaps that have exposed the public to fraud, including pyramid schemes and fake digital coins.