The Bank of Uganda advised the Blockchain Association of Uganda (BAU) to sharpen its know-how on the sandbox regulations, inviting members to more technical discussions. The central bank is open to the idea of crypto businesses participating in its Regulatory Sandbox, inviting members of the Blockchain Association of Uganda (BAU) to share their expertise and experience with the central bank.
A letter from the bank dated June 1 to the BAU chairperson, Kwame Rungunda, referred to a meeting held between the two parties in early May. The central bank also said that the nation’s crypto advocacy group to brush up on the sandbox rules and regulations before it made enough time for more technical discussions.
In June last year, the bank launched a regulatory sandbox infrastructure supporting financial technology (FinTech) companies to test “innovative financial solutions” within a controlled environment. It did all that while hoping to promote the uptake of electronic payments and other digital financial services in the nation.
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
— Blockchain Association of Uganda (BAU) (@blockchainug) June 4, 2022
Bank Of Uganda Changes Stance On Crypto
The recent letter seems to be a u-turn in the Bank of Uganda’s chosen approach toward crypto. In late April, the bank issued a warning targeting cryptos, sending a notice to all payment service providers in the nation saying that by permitting crypto transactions they were opening the East African nation to scams and money laundering.
It also said that any provider, including banks and fintech businesses found to be supporting crypto trading in Uganda would have their financial license revoked. Crypto, in general, is not banned in Uganda and can still be acquired, held, and traded. But, cryptos are not regulated, and a company is yet to be issued a digital asset license to offer services in the nation.
Buy Crypto NowCrypto adoption in Africa appears to be heating up, attracting many venture funds and crypto companies. Between 2020 and 2021 cryptocurrency use in Africa exploded by almost 1,200% and about 2% of Ugandans use crypto.
Countries around the continent are adopting a crypto-friendly strategy, the Central African Republic became the first country in Africa to adopt Bitcoin (BTC) as a legal tender and only the second nation to ever do so in the entire world.
The state-owned Kenyan energy firm KenGen also invited Bitcoin miners to move to the nation to buy up its excess power that is generated from geothermal energy, which may see the country generate revenue via crypto mining fees and taxes.
