The Bank of Uganda (BOU) has hinted that it is open to the idea of crypto firms participating in the regulatory sandbox, inviting members of the Blockchain Association of Uganda (BAU) to impart their insight to the national bank.

A letter from the bank dated June 1 to the director of the BAU, Kwame Rungunda, alluded to a meeting between the two parties toward the beginning of May. The national bank additionally prompted the country's crypto advocacy group to hopefully look out for some way to improve on the sandbox guidelines before it set aside a few minutes for additional technical conversations.

“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,” BAU twitted on June 4.

In June 2021, the bank launched a regulatory sandbox framework considering financial technology (fintech) firms to test “innovative financial solutions” in a controlled environment in the hopes of advancing the take-up of electronic payments and other digital financial services within the country.

The new letter gives off an impression of being a u-turn in the Bank of Uganda's approach toward cryptocurrency.

In late April, the bank gave an admonition in regards to cryptocurrencies, sending a notification to all payment service providers in the nation expressing that by permitting crypto exchanges they were opening the country to scams & money laundering.

It added that any supplier, like a bank or fintech business viewed as working with the exchange of cryptocurrencies, would have their monetary license denied.

Cryptocurrency is not restricted in the city of Uganda and exchanged. In any case, cryptographic forms of money are not directed and as of now, no firm has been issued a digital asset license to work in the country.

Joyashree Dey

CBW - External Analyst

INDIA