Rwanda Government Orders Banks to Stop Facilitating Crypto-Related Transactions – Regulation Bitcoin News
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On April 19th, 2021, the National Bank of Rwanda (NBR) issued a directive to all financial institutions in the country to stop providing services related to cryptocurrencies. The directive stated that banks, microfinance institutions, and other financial service providers must not facilitate any crypto-related transactions, including buying, selling, trading, and holding.
The NBR’s directive comes as part of its efforts to protect consumers and ensure the safety of the financial system. The central bank noted that cryptocurrencies are highly volatile and can be used for money laundering and other illegal activities. It also pointed out that cryptocurrencies lack the necessary regulatory framework and consumer protection measures.
The NBR’s move is in line with the stance taken by other central banks around the world. Several countries, including India, China, and the United States, have taken steps to regulate or ban cryptocurrencies.
The NBR’s directive does not apply to non-financial institutions such as exchanges and digital wallets. However, the central bank warned that it will continue to monitor the use of cryptocurrencies and take action against any entities that violate its directive.
The move is likely to have a significant impact on the crypto industry in Rwanda. Cryptocurrency exchanges, which had been operating in the country, will now have to shut down or relocate to other countries.
Despite the NBR’s directive, some experts believe that the country’s stance towards cryptocurrencies is not as negative as it appears. They argue that the central bank’s move is a sign that it is open to exploring the potential of blockchain technology and digital currencies.
It remains to be seen how the central bank’s directive will be implemented in the coming months. For now, however, it is clear that the Rwandan government is taking a cautious approach towards cryptocurrencies.
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