Bank of Uganda hinted the idea of crypto Firm in the regulatory Sanbox


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