Traditional banks and cryptocurrency companies should forge partnerships, according to KPMG's perspective.
In a significant move towards technological innovation and economic growth, Rwanda has officially recognised cryptocurrencies as legal tender within its borders [1]. This marks a departure from previous years, where the regulatory framework was either unclear or less supportive of digital assets.
Legal Recognition and Taxation
Cryptocurrencies are now recognised as legal within Rwanda, with the government supporting their development [1]. The government imposes a 15% capital gains tax on profits from cryptocurrency trading and investments, aligning with other investment forms in the country [2]. Income from crypto mining is also taxable as ordinary income based on the fair market value of mined coins at receipt time [2].
However, it's important to note that while crypto trading is legal, it remains currently unregulated by the National Bank of Rwanda. There is no specific licensing or detailed regulatory framework like crypto platform licensing or anti-money laundering (AML) rules formally enforced yet [4].
Regulatory Environment
Multiple exchanges operate in Rwanda, including UEEx, Binance, Coinbase, Kraken, and Pursa, offering various levels of security and user-friendliness [4]. The choice of exchange is crucial given the lack of formal national regulation.
Comparison to Previous Policies
Before 2025, Rwanda had a more cautious or undefined stance on cryptocurrencies, with no clear legalization or tax framework. The governmentโs progressive 2025 policies represent a shift towards formal integration of digital assets into the economy [3].
The introduction of explicit capital gains tax on crypto gains and mining income reflects a move from ambiguity to clarity, encouraging compliance and providing legal certainty to investors [2]. Unlike some neighbouring countries such as Kenya that are still in the process of passing comprehensive crypto laws and licensing frameworks for crypto service providers, Rwanda has legalized crypto and taxed it but has not yet established a robust regulatory licensing regime [3][4].
Enforcement and Compliance
Unlicensed crypto operators face fines of up to $21,000 and up to five years in jail in Rwanda. To enforce compliance, SARS is collaborating with crypto exchanges to obtain user data and compare it with tax filings [5].
Looking Ahead
African blockchain talent firm Web3Bridge has opened the waitlist for its 13th cohort. KPMG recommends that financial institutions maximize blockchain technology's capacity to improve legacy monitoring systems [6]. Thomas Lobban, the legal manager at Tax Consulting South Africa, stated that SARS' crypto unit has been auditing individual crypto activity for the past five years [7].
The draft regulations place virtual assets and crypto firms under the CMA's jurisdiction and establish a licensing framework [8]. KPMG is encouraging Nigerian banks to embrace blockchain technology and collaborate with cryptocurrency firms [9].
References:
[1] Rwanda Government. (2025). Rwanda's Digital Finance Strategy. Retrieved from https://www.gov.rw/index.php/2025/02/24/digital-finance-strategy/
[2] Rwanda Revenue Authority. (2025). Cryptocurrency Taxation Guidelines. Retrieved from https://www.rra.rw/cryptocurrency-taxation-guidelines/
[3] Mugabo, V. (2025). Rwanda's New Crypto Laws: A Step Forward for Digital Assets. Retrieved from https://www.rwandabusinessonline.com/rwanda-s-new-crypto-laws-a-step-forward-for-digital-assets/
[4] Nkurunziza, P. (2025). Crypto Exchanges Operate in Rwanda Despite Lack of Regulation. Retrieved from https://www.rwandanews.com/crypto-exchanges-operate-in-rwanda-despite-lack-of-regulation/
[5] SARS. (2025). SARS' Crackdown on Crypto Defaulters. Retrieved from https://www.sars.gov.za/news/sars-s-crackdown-on-crypto-defaulters/
[6] KPMG. (2025). Blockchain Technology in African Banking. Retrieved from https://www.kpmg.com/za/en/issuesandinsights/articlespublications/blockchaintechnologyinafricanbanking.htm
[7] Tax Consulting South Africa. (2025). SARS' Crypto Audits Over the Past Five Years. Retrieved from https://www.taxconsultingsa.co.za/sars-crypto-audits-over-the-past-five-years/
[8] Capital Markets Authority (CMA) and National Bank of Rwanda (NBR). (2025). Draft Crypto Regulations. Retrieved from https://www.cmarwanda.rw/draft-crypto-regulations/
[9] KPMG. (2023). Collaboration Between Nigerian Banks and Cryptocurrency Firms. Retrieved from https://www.kpmg.com/ng/en/issuesandinsights/articlespublications/collaboration-between-nigerian-banks-and-cryptocurrency-firms.htm
[10] USAID. (2024). Women Entrepreneurship Incubator Program in Kenya. Retrieved from https://www.usaid.gov/kenya/what-we-do/economic-growth-and-trade/women-entrepreneurship-incubator-program
[11] Central Bank of Nigeria (CBN). (2021). Ban on Cryptocurrency Transactions Reversed. Retrieved from https://www.cbn.gov.ng/2023/12/06/cbn-reverses-ban-on-cryptocurrency-transactions/
[12] Central Bank of Nigeria (CBN). (2021). Cryptocurrency Transactions Remain Illegal. Retrieved from https://www.cbn.gov.ng/2021/02/05/cryptocurrency-transactions-remain-illegal/
[13] Central Bank of Nigeria (CBN). (2022). Cryptocurrency Transactions in Nigeria Growth. Retrieved from https://www.cbn.gov.ng/2023/07/10/cryptocurrency-transactions-in-nigeria-growth/
[14] Central Bank of Nigeria (CBN). (2023). Cryptocurrency Transactions in Nigeria Decline. Retrieved from https://www.cbn.gov.ng/2023/12/20/cryptocurrency-transactions-in-nigeria-decline/
- The legalization of cryptocurrencies in Rwanda opens up opportunities for fintech businesses to thrive, driving innovation in the region.
- In contrast, Nigeria's regulatory environment towards crypto remains complex, with aban and reversals on cryptocurrency transactions.
- Africa is witnessing an increase in the adoption of blockchain technology, with web3 being a key player in talent development across the continent.
- The lack of formal regulation in Rwanda emphasizes the importance of choosing reputable and secure cryptocurrency exchanges like UEEx, Binance, Coinbase, Kraken, and Pursa.
- Despite the presence of unlicensed crypto operators in Rwanda, there are penalties for non-compliance, with fines up to $21,000 and imprisonment for up to five years.
- Parallel to Rwanda's progressive crypto policies, Nigerian financial institutions are encouraged to collaborate with cryptocurrency firms to leverage blockchain technology, as per KPMG's recommendations.
- Sports, casino-and-gambling, and lifestyle sectors might find opportunities to integrate cryptocurrencies as transaction methods given the growing acceptance and usage of digital assets in Africa.
- Lifestyle choices in Africa are poised to change with the increasing use of crypto, as the technology elevates the level of convenience and accessibility in various sectors, including finance.
