Friday, July 19News That Matters

Use of Crypto currency is not Allowed in Uganda – BoU

Bank of Uganda has notified members of the public that it has not licensed any company or any person to offer cryptocurrency services in Uganda.
“This is to advise that Bank of Uganda has not licensed any institution to sell cryptocurrencies or to facilitate the trade in crypto-currencies. This is in line with the official government position as communicated by the Ministry of Finance, Planning and Economic Development in October 2019,” a circular by Andrew Kawere, the acting director of the national payments system dated April 29 says.
In the last few years, cryptocurrency has gained popularity in Uganda, especially in urban centres.
Many Ugandans, especially professionals seeking an additional income and the unemployed have invested in cryptocurrencies in a bid to make a living.
However, on several occasions, many of these have been conned of their monies.
In the April 29, notice, BoU notes that there are several media reports and adverts telling the public that they can covert cryptocurrencies into mobile money and vice versa which the Central Bank says is not true.
“We are also aware that such a conversion cannot happen without the participation of the Payment Service Providers or Payment System Operators,” BoU says.
The Central Bank has consequently warned all licenced entities under the National Payment Systems Act, 2020 to desist from facilitating cryptocurrency transactions.
“Bank of Uganda shall not hesitate to invoke its powers under Section 13(1)(b)and (f) of the NPS Act 2020 for any licences that will be found in breach of the above directive.”

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