Uganda Central Bank Says It Is Open to Crypto Firms Participating in Regulatory Sandbox

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

The Bank of Uganda (BOU) has hinted that it is open to the idea of crypto firms participating in the regulatory sandbox. The central bank’s position follows its deliberations with a team from the Blockchain Association of Uganda (BAU).

BAU Members Asked to Acquaint Themselves Sandbox Regulations

The Ugandan central bank has said following talks with the team from the BAU, it is now open to the idea of having crypto firms participate in its regulatory sandbox. Consequently, the central bank has asked members of the BAU that may want to join the sandbox to familiarize themselves with the NPS Sandbox Regulations 2021 and the BOU Sandbox Framework.

In a 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 also lauded the proposal to share information. He said:

Bank of Uganda welcomes your proposal to share knowledge with our technical teams on the crypto business models and whether some use cases are eligible for testing under the Regulatory Sandbox.

In the letter, Andrew Kawere also advised Kwame Rungunda to contact another central bank official Alex Ochan for the purposes of scheduling technical discussions.

Shaping the Opportunity for Crypto 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.”

Tags in this story
Andrew Kawere, Bank of Uganda, Blockchain Association of Uganda, consumer protection, Financial Services, Fintech, Kwame Rungunda, Regulatory Sandbox, Uganda, Uganda Bitcoin, Uganda Crypto

What are your thoughts on this story? Let us what you think in the comments section below.

Terence Zimwara

Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.














Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Leave a Comment

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.