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Uganda, New Blessed Land for Bitcoin – Welcome to Crypto Businesses

Bitcoin is in the place – The Ugandan Central Bank send encouraging signs to crypto businesses. The institution, however, held a harsh speech against Bitcoin (BTC) and cryptocurrencies.

Crypto companies allowed to play in the regulatory sandbox

The Central Bank of Uganda refers in its letter to the President of the Blockchain Association of Uganda (BAU), Kwame Rungundaof a meeting between the two parties which was held on May 4, 2022.

The Bank of Uganda said opened to a participation of crypto companies in his sandbox regulatory. The members of the association who are concerned must therefore familiarize themselves with the relevant regulations.

The Bank of Uganda had launched this regulatory sandbox for fintech in June 2021. This initiative would aim to:

“(…) promote innovation in financial services, attract capital and funding for fintech companies, and provide shared learning opportunities for innovators and regulators. »

In concrete terms, the regulatory bag box allows fintech startups to test their innovative solutions in a controlled environment. Companies wishing to use it must pay1 million Ugandan shillingsis around $290.

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From Prohibition to Information Sharing: Breakthrough of Crypto Businesses in Uganda

The Central Bank’s letter also indicates that it is in favor of the BAU’s proposal. It will then be a question of setting up a information sharing on cryptocurrencies with the institution’s teams:

“Bank of Uganda welcomes your offer to share knowledge with our technical teams on crypto business models and whether certain use cases can be tested under the regulatory sandbox. »

Is the Central Bank of Uganda changing its current rather reluctant stance on cryptocurrencies? The director of the national payment system, Andrew Kawerehad indicated, in a notice dated April 29, 2022, that:

“The Bank of Uganda has taken note of press articles and advertisements advising the public to convert cryptocurrencies to mobile money, and vice versa. »

However, these advertisements are, according to Andrew Kawere, illegal :

“We would like to inform you that the Bank of Uganda has not granted any license to any institution to sell cryptocurrencies or to facilitate trading in cryptocurrencies. This is in line with the official government position as communicated by the Ministry of Finance, Planning and Economic Development in October 2019.”

L’Ugandalike other African countries, is theoretically a fertile ground for the adoption of cryptocurrencies. However, the regulations countries on the continent must keep pace with innovations. It is only in this dynamic that cryptocurrencies can bring real positive changes.

In Uganda as in other African countries, Bitcoin continues to grow. And you, what are you doing to prepare for the future? Start getting acquainted with this exciting world, and don’t wait any longer for yourself create an account on Binancethe leading Bitcoin and crypto exchange (affiliate link).

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