Uganda Central Bank Says It Is Open to Crypto Firms Participating in Regulatory Sandbox – Regulation Bitcoin News

Bank of Uganda (BOU), however, has suggested that it would be open to crypto-firms participating in regulatory sandbox. The central bank’s position follows its deliberations with a team from the Blockchain Association of Uganda (BAU).

Member BAU asks to be familiar with Sandbox Regulations

After talks with BAU team members, the Ugandan central banks has indicated that it now supports the possibility of crypto companies participating in the regulatory sandbox. The central bank asked BAU members who may be interested in joining the sandbox, to review the NPS Sandbox Regulations 2020 and the BOU Sandbox Framework.

In the following: letter addressed to Kwame Rungunda, the chairperson of BAU, the central bank’s Andrew Kawere hinted that the deliberations between the bank and the team from BAU influenced its position on the participation of crypto firms. Kawere was also applauding the idea of sharing information. Kawere said,

Bank of Uganda would be pleased to hear from you regarding your ideas for sharing knowledge and technical advice on crypto business models. We also want to know if certain use cases can be tested under the Regulatory Sandbox.

Andrew Kawere advised Kwame Raunda in the letter to reach out to Alex Ochan, a central bank official for technical discussion.

Exploiting the Crypto-Opportunity in Uganda

As reported by Bitcoin.com News, the BOU launched its fintech regulatory sandbox in June 2021 and at that time the central bank said this would “promote financial services innovation, attract capital and funding for fintech firms, and provide shared learning opportunities for the innovators and regulators.”

Meanwhile, in its tweet after receiving the letter from the central bank, the BAU said it looked forward to working with the central bank and other stakeholders “in shaping the opportunity for crypto in Uganda, while proactively mitigating the potential risks and ensuring consumer protection.”

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Terence Zimwara

Terence Zimwara was a Zimbabwean award-winning journalist and author. He is a prolific writer on the economic woes of African countries, as well as digital currencies that can be used to provide an escape path for Africans.