Uganda, in turn, is very interested in cryptocurrencies. The adoption of cryptocurrencies in Africa continues to grow.
The Bank of Uganda is open to crypto firms participating in its regulatory sandbox by inviting members of the Uganda Blockchain Association (BAU) to share their knowledge with the central bank.
Uganda, in turn, is very interested in cryptocurrencies
The Bank’s June 1 letter to BAU President Kwame Rungunde refers to a meeting between the two parties in early May. The central bank also advised a group promoting cryptocurrency in the country to thoroughly review the rules before it is time to start technical discussions.
Last June, the bank launched a regulatory sandbox allowing fintech companies to test “innovative financial solutions” in a controlled environment in hopes of promoting the use of electronic payments and other digital financial services in the country.
This recent letter seems to indicate that the Bank of Uganda wants to change its approach to cryptocurrencies.
In April, the bank issued a formal warning about cryptocurrencies, sending a notice to all payment service providers in the country, explaining that by allowing crypto transactions, it opened the country to money laundering and fraud of all kinds. And to add that any provider, such as a bank or a fintech company, that facilitates cryptocurrency exchanges will have their license revoked.
Cryptocurrency is not banned in Uganda, it can be bought, held and sold. However, cryptocurrencies are not regulated and no digital asset company has yet received an official license to operate in the country.
Cryptocurrency adoption in Africa continues to grow
Between 2020 and 2021, the use of virtual currencies on the continent has grown by about 1200%, with nearly 2% of Ugandans using cryptocurrencies. Other countries are interested in cryptocurrencies. The Central African Republic became the first African country to accept Bitcoin (BTC) as legal tender and the second country in the world. Kenyan energy company KenGen has also invited all Bitcion miners to come to the country to buy its geothermal power, which will allow the government to generate revenue through mining taxes.
We look forward to working with @BOU_Official and all other stakeholders in shaping the opportunity for crypto in Uganda, while proactively mitigating the potential risks and ensuring consumer protection. @CmaUganda @FitspaUG https://t.co/L8CMi4Fo5f