The National Bank of Rwanda (NBR) said it has banned financial service providers in the country from participating in "any activities related to cryptocurrencies until regulations are in place." In a letter to general managers and chief executives of financial services institutions, Soraya Hakuziyaremye, the acting governor of the NBR, said the ban would help ensure "efficient and sound financial services".

Although the country's central bank issued a warning against crypto-related activities in 2018, Hakuziyaremye acknowledged in his letter that Rwandan residents have continued to trade digital assets such as bitcoin. According to the letter, available data indicates that "more than $3 million of digital assets have been traded on the Rwandan market since January 2020."

At the same time, Hakuziyaremye sought to justify the central bank's decision to ban financial service providers from facilitating crypto-related transactions.

"Although crypto asset activities are restricted within the country and do not pose a material risk to Rwanda's financial and monetary system, the central bank remains concerned about the involvement of financial institutions in crypto asset activities," Hakuziyaremye said in the letter.

In the letter, the acting governor cited the unregulated status of most cryptocurrency assets and how this leaves Rwandan users without "the guarantees and safeguards associated with regulated financial services."

Hakuziyaremye's letter also sought to bring to the attention of cryptocurrency investors in Rwanda decisions made by some regulatory bodies regarding unregulated cryptocurrency entities.

"For example, Rwanda took note of Binance, which is under investigation in the United States for money laundering allegations. The company has been banned by the Financial Conduct Authority (FCA) due to weak consumer and investor protection mechanisms, "the acting governor said.