The National Bank of Rwanda (NBR) has reiterated its stance against the use of cryptocurrencies, emphasizing that they remain illegal for transactions involving the Rwandan franc. This warning comes in light of recent developments in the crypto market, particularly Bybit's new support for the local currency on its platform. The document provides a justification for the fact that regulatory bodies are increasingly concerned about the implications of cryptocurrency adoption in local economies.
NBR's Public Announcement on Crypto Assets
In a public announcement, the NBR highlighted that crypto assets are not recognized as legal tender under Rwandan law, urging citizens to refrain from engaging in cryptocurrency transactions. The central bank pointed out the significant financial risks associated with crypto investments, including the lack of legal recourse in the event of losses.
Legal Currency and Compliance Regulations
Furthermore, the NBR reaffirmed that the Rwandan franc is the sole legal currency in the country. It also stressed that licensed financial institutions are strictly prohibited from converting the Rwandan franc into cryptocurrencies or facilitating such exchanges. This reinforces the need for compliance with existing regulations.
In a recent development, the Russian government has announced plans to exempt cryptocurrency trading from VAT, contrasting with Rwanda's strict stance against crypto transactions. For more details, see read more.
