Key Takeaways
- Uganda blockchain group calls for regulatory framework from government
- The Eastern African nation lacks comprehensive crypto laws
- This trend is also noticed in other African nations like Nigeria
Suleiman Murunga, a key stakeholder in the organization, revealed that developing a framework would foster the growth and success of the blockchain industry in Uganda. The country’s apex bank recently received a directive from the Financial Intelligence Authority (FIA) to research cryptocurrencies.
The organization noted that only a few crypto firms were duly registered in the country, a significant financial security risk for citizens. However, no concrete plans have been announced by the Bank of Uganda and the finance ministry.
Murunga believes that it is essential for regulators to heed the call of the FIA and create a comprehensive regulatory environment for crypto services. Uganda has one of the fastest youth populations, and many have taken to cryptocurrencies in recent years.
Cryptocurrencies are banned as legal tender in the country, but many use p2p exchanges to make transactions to avoid government sanctions. This, however, poses a risk since citizens can be defrauded if the platform stops operating.
Creating a legal crypto framework will ensure that only legitimate crypto service providers will be licensed to operate in the country. This will provide security to citizens and ensure the development of the crypto industry.
Several African countries are contemplating crypto regulations, including the largest economy in the region Nigeria. The West African nation has the biggest bitcoin market in the region despite banning crypto assets in February.
There have been calls for regulation in the country, but no concrete laws or proposals have been made by the Central Bank of Nigeria (CBN). However, it is understood that the upcoming launch of e-naira could pave the way for a new regulatory framework.
Do you agree with the statement of Murunga?
