Ugandan banks have warned the public and licensed institutions against crypto-related transactions. They also warn the public about the practice of using mobile money to convert cryptocurrency. The central bank warned it will not hesitate to act against entities found to be in breach of the country’s laws.
Cryptos can be traded without a license from any entity
The central bank in Uganda recently issued a statement reminding the public that no business is licensed to offer or facilitate cryptocurrency-related services. In the statement, licensed entities were warned not to convert crypto into mobile money.
According to a report in the Monitor, the warning — which came from Andrew Kawere, the director of payments at the Bank of Uganda (BOU) — comes less than three years after the country’s finance minister Matia Kasaija made similar remarks. In the report, Kawere is quoted reiterating the central bank’s position. Kawere said the following:
“Bank of Uganda has noted press reports and adverts advising the public that they can covert cryptocurrencies into mobile money and vice versa. This is because such a transaction cannot be made without participation from payment service providers or operators of payment systems. It is our intention to inform you that [the]Bank of Uganda is not allowing any bank to offer cryptocurrencies for sale or facilitate trade-ins. This is in line with the official government position as communicated by the Ministry of Finance, Planning and Economic Development in October 2019.”
However, in the central bank’s latest circular, Kawere warned licensed entities violating provisions of Uganda’s National Payment System Act, 2020, that the central bank will not hesitate “to invoke its powers under Section 13(l) (b) & (f) of the NPS Act, 2020 for any licensees that will be found in breach of the above directive.”
Let us know your opinions on the story. Please comment below to let us know your thoughts.
Image creditShutterstock. Pixabay. Wiki Commons
DisclaimerInformational: It does not constitute an offer, solicitation, or recommendation of any company, products or services. Bitcoin.com doesn’t offer investment, tax or legal advice. This article does not contain any information, products, or advice that can be used to cause or alleged result in any kind of damage.