Rwanda’s central bank warned citizens against using the Rwandan franc in crypto transactions after Bybit launched an FRW peer-to-peer trading feature without regulatory approval.
The move came just days after Rwanda advanced new legislation to regulate virtual asset service providers, highlighting a clash between tightening rules and exchange expansion.
The National Bank of Rwanda said crypto-assets remain unauthorised for payments, conversion, or P2P trading under current law.
Bybit’s launch included promotional incentives but made no reference to local approval, drawing criticism and raising questions over compliance with Rwanda’s evolving regulatory framework.
The timing is significant as Rwanda pilots its central bank digital currency, the e-FRW, with authorities concerned that unregulated platforms could undermine trust in the national currency.
Under proposed laws, unlicensed operators could face fines of up to 30 million FRW and prison terms of up to five years, increasing pressure on foreign exchanges.
While platforms like Binance and Remitano have offered FRW trading for years without similar scrutiny, Bybit’s aggressive rollout may set a precedent for stricter enforcement across the region.