Not Legal Tender: Rwanda Issues Warning Over Bybit’s FRW P2P Trading

Rwanda’s National Bank (NBR) has issued a sharp warning after Bybit added support for the Rwandan franc (FRW) on its peer-to-peer (P2P) crypto platform. The central bank clarified that crypto payments and trades using FRW remain illegal in the country.

“Crypto-assets are NOT authorized for payments, FRW conversion, or P2P trading involving FRW under the current framework,” the bank posted on X, urging citizens to avoid crypto due to “serious financial risks and no recourse in case of loss.” 

https://twitter.com/CentralBankRw/status/2040694581402951738?ref_src=twsrc%5Etfw” target=”_blank” rel=”noopener

The warning followed Bybit’s announcement on April 2 that the FRW can be used to buy and sell crypto, accompanied by new-user rewards and bi-weekly merchant commissions.

The National Bank of Rwanda (NBR) made it clear that the Rwandan franc (FRW) is the only legal tender in Rwanda. Banks and financial institutions licensed by the NBR are not allowed to convert FRW into crypto or the other way around. 

Building the regulatory squeeze

Rwanda has taken a cautious approach to cryptocurrencies since 2018, when the central bank first banned their domestic use. Over time, authorities have started building a regulatory framework. 

In March 2025, the NBR and the Capital Markets Authority released a draft law for Virtual Asset Service Providers (VASPs), which banned crypto as legal tender, prohibited crypto mining, and blocked FRW-pegged tokens. The Cabinet approved a full version of the bill on March 4, 2026, and the Chamber of Deputies passed its general principles on March 31.

Regulatory push vs. crypto promotion

Bybit’s P2P FRW launch comes as Rwanda pushes to strengthen its national currency. In 2024, the National Bank of Rwanda (NBR) announced that it has been exploring a retail central bank digital currency (CBDC) to make the economy more cashless and resilient. The planned e-franc rwandais would allow offline transfers using Bluetooth or NFC, include smart contracts, and offer limited privacy. 

“The advantages of open programmability, which facilitates value-added innovative products and services, are expected to outweigh the arguments of privacy and security,” the central bank said.

Under the draft law, unlicensed crypto operators face fines of up to 30 million FRW (about $21,000) and up to five years in prison. While Binance and Remitano have offered FRW P2P trading for years without trouble, Bybit’s heavily promoted launch seems to have crossed a regulatory line. 

The warning shows Rwanda’s determination to protect the national currency while keeping crypto activity in check. Sub-Saharan Africa remains the region with the smallest crypto economy, but on-chain value grew 52% over the past year, showing rising grassroots adoption despite strict rules.

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