The Ugandan reserve bank has advised licenced organisations and the broader population about enabling cryptocurrency-related transactions and the practice of turning bitcoin into digital finance and vice-versa. The reserve bank has cautioned that it will not think twice about taking action over firms discovered to be violating the nation's rules.
Uganda's reserve bank previously released a statement in which it reminded the community that no firm is authorised to promote or enable cryptocurrency-related activities. The notification cautioned licensed organisations to stop converting cryptocurrency to digital payments and vice versa.
As per the Guardian, Andrew Kawere, the head of communications at the Bank of Uganda (BOU), issued the caution just under three years after the nation's economy minister, Matia Kasaija, issued strong statements. Kawere is mentioned in the paper as repeating the central bank's viewpoint. "The Bank of Uganda has taken note of news stories and advertisements informing people that they may convert cryptocurrency into digital payments and vice versa," he added. We too are conscious that another transformation cannot take place without the involvement of online payment suppliers and/or payment processing administrators this would be to inform you that the Bank of Uganda has not authorised any business to sell or enable the exchange of cryptos. This is consistent with the official federal position stated in October 2019 by the Ministry of Finance, Planning, and Economic Development."
Nevertheless, in the central bank's most recent circular, Kawere warned licenced organisations that violated regulations of Uganda's National Money Transfer Act, 2020, that the reserve bank will not reluctant "to summon its government under Section 13(l) (b) & (f) of the NPS Act, 2020 for any franchisees discovered in contravention from the above guideline."