The bank advised the Blockchain Association of Uganda (BAU) to sharpen up its information of the sandbox rules, tempting its members on to additional technical discussions.
The Bank of Uganda is open to the idea of cryptocurrency businesses taking part in its regulatory Sandbox, inviting members of the Blockchain Association of uganda (BAU) to share their data with the 1.
A letter from the bank dated June one to the chairperson of the BAU, Kwame Rungunda, stated a gathering between the 2 parties in early could. The central bank a meeting suggested the country’s crypto support cluster to brush au fait the sandbox laws before it made time for further technical discussions.
In June 2021, the bank launched a restrictive sandbox framework allowing money technology (FinTech) firms to check “innovative money solutions” in a controlled environment within the hopes of promoting the uptake of electronic payments and other digital financial services within the country.
The recent letter appears to be a u-turn within the Bank of Uganda’s approach toward cryptocurrency.
In late April, the bank issued a warning regarding cryptocurrencies, sending a notice to any or all payment service suppliers within the country saying that by allowing crypto transactions they were opening the country to hiding and scams. It added that any provider such as a bank or fintech business found to be facilitating the trade of cryptocurrencies would have their financial license revoked.
Crypto is not banned in Uganda and can still be purchased, held, and traded. However, cryptocurrencies are not regulated, and a firm is yet to be issued a digital plus license to control within the country.
( Jesse Coghlan, Cointelegraph, 2022 )