{"id":17619,"date":"2023-02-14T09:56:52","date_gmt":"2023-02-14T09:56:52","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/rwanda-government-orders-banks-to-stop-facilitating-crypto-related-transactions-regulation-bitcoin-news\/"},"modified":"2023-02-14T09:56:52","modified_gmt":"2023-02-14T09:56:52","slug":"rwanda-government-orders-banks-to-stop-facilitating-crypto-related-transactions-regulation-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/rwanda-government-orders-banks-to-stop-facilitating-crypto-related-transactions-regulation-bitcoin-news\/","title":{"rendered":"Rwanda Government Orders Banks to Stop Facilitating Crypto-Related Transactions \u2013 Regulation Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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According to the National Bank of Rwanda, the country\u2019s regulated financial services providers are now prohibited from facilitating crypto-related transactions. In her Jan. 31 letter justifying the decision, the acting governor Soraya Hakuziyaremye cites the unregulated status of most crypto assets and how this leaves users without the \u201cguarantees and safeguards associated with regulated financial services.\u201d <\/strong><\/p>\n

Rwanda\u2019s Growing Interest in Crypto<\/h2>\n

The National Bank of Rwanda (NBR) has said the country\u2019s financial services providers are forbidden from engaging in \u201cany crypto-related activities until a regulatory framework has been put in place.\u201d In a letter addressed to managing directors and CEOs of financial services providers, the NBR\u2019s acting governor Soraya Hakuziyaremye suggested that the prohibition would help to ensure \u201cefficient and sound financial services.\u201d<\/p>\n

Despite the central bank\u2019s 2018 warning<\/a> against crypto-related activities, Hakuziyaremye acknowledged in her letter that Rwandan residents have continued to trade digital assets like bitcoin. According to the letter, available data suggest that \u201cmore than three million U.S. dollars were traded on [the] Rwanda market since January 2020.\u201d<\/p>\n

Meanwhile, in the same letter<\/a>, Hakuziyaremye sought to justify the central bank\u2019s decision to bar financial services providers from facilitating crypto-related transactions.<\/p>\n

\u201cAlthough crypto asset activities are still limited and therefore, do not pose substantial risks to [the] financial and monetary system of Rwanda, the NBR is concerned about the involvement of the financial institutions in crypto activities,\u201d Hakuziyaremye said.<\/p>\n

Crypto-Related Activities Lack \u2018Guarantees and Safeguards Associated With Regulated Financial Services\u2019<\/h2>\n

In the Jan. 31 letter, the acting NBR governor cites the unregulated status of most crypto assets and how this leaves Rwandese users without the \u201cguarantees and safeguards associated with regulated financial services.\u201d The letter also points to how crypto investors elsewhere have been defrauded by scammers like Ruja Ignatova<\/a> of Onecoin and Gerald Cotten<\/a> of Quadriga crypto exchange.<\/p>\n

Hakuziyaremye\u2019s letter also attempts to draw Rwandan crypto investors\u2019 attention to the decisions that some regulators have taken against unregulated crypto entities.<\/p>\n

\u201cFor example, Binance, whose presence was noticed in Rwanda, is under investigation in the United States of America over money laundering allegations. The same company has been banned by the Financial Conduct Authority (FCA) due to weak consumer and investor protection mechanisms,\u201d the acting governor said.<\/p>\n

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What are your thoughts on this story? Let us know what you think in the comments section below. <\/strong><\/em><\/p>\n

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\nTerence Zimwara <\/h6>\n

\nTerence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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