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Rwanda Central Bank Reaffirms Crypto Ban After Bybit Integration
The NBR warns that crypto-assets are not legal tender, signaling potential crackdowns on payment gateways and bank accounts facilitating P2P transactions.
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Regulatory Stance Hardens
The National Bank of Rwanda (NBR) has issued a stern reminder to the nation’s financial participants, reaffirming the illegality of cryptocurrency-related transactions involving the Rwandan franc (RWF). The regulatory intervention comes on the heels of a strategic move by global digital asset exchange Bybit, which recently integrated support for the Rwandan franc into its peer-to-peer (P2P) trading platform.
Despite the global proliferation of digital assets and the increasing adoption of P2P exchanges in emerging markets, the NBR remains steadfast in its protectionist stance. The central bank’s latest advisory serves as a direct warning to both retail participants and financial institutions, emphasizing that digital assets remain outside the scope of the country’s regulated financial framework.
The Risks of Disintermediation
The NBR’s decision to reiterate its ban is rooted in a fundamental concern for consumer protection and financial stability. According to the central bank, the decentralized and largely anonymous nature of cryptocurrency transactions creates an environment where investors are stripped of legal recourse.
"The public is advised that crypto-assets are not legal tender in Rwanda and are not regulated by the National Bank of Rwanda," the central bank stated. The NBR highlighted that the volatility inherent in the crypto market, combined with the lack of underlying tangible assets, exposes Rwandan users to significant financial risks. Furthermore, the bank noted that the absence of a clear regulatory oversight mechanism makes it impossible to guarantee the safety of funds or provide protection against fraud and market manipulation.
Bybit’s P2P Expansion Faces Friction
Bybit’s decision to include the Rwandan franc in its P2P marketplace was intended to facilitate easier entry for local traders into the digital asset ecosystem. By allowing users to trade crypto directly for local currency, Bybit sought to bypass the traditional banking bottlenecks that often plague crypto adoption in East Africa.