The Central Bank of Uganda (BOU) has announced that it has not licensed any company or individual to provide cryptocurrency services.
BOU warned organizations and citizens of the country from any “facilitation of transactions related to cryptocurrency”, as well as from the practice of converting digital money into fiat money and vice versa.
The regulator emphasizes that there are no legal operators for the circulation of crypto assets in Uganda, and the position of the BOU is fully consistent with the official position of the government, which opposes the legalization of crypto assets.
In this regard, the Central Bank said in a statement, the information of a number of local media and advertisements about cryptocurrency conversion services do not correspond to reality, since such activities are prohibited.
“We understand that such transactions cannot occur without the participation of financial service providers or payment system operators. Therefore, BOU will not hesitate to revoke licenses and apply penalties against organizations found to be violating the laws of the country,” the regulator said in a statement.
BOU previously announced plans to pilot the introduction of a digital Ugandan shilling. The Central Bank announced the start of work to study the possibilities of using the central bank’s digital currency in the country and plans to revise legislation.
At the end of April 2022, the Central African Republic became the first country in Africa to recognize bitcoin as a legal tender.
Source: Bits
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