For a long time now, several influential people in Uganda have been sharing the same story. The Deputy Governor at the Bank of Uganda said there are no regulations in and around using cryptocurrencies but you will be risking your investment. And recently, the Finance Minister talked strongly against cryptocurrencies.
The bottomline? Cryptocurrency is not considered a legal tender in Uganda.
Matia Kasaija — The Ministry of Finance, Planning and Economic Development — warned the public at the Uganda Media Centre in Kambala. As per the video, he said:
“This is to inform the general public that the Government of Uganda doesn’t recognize any cryptocurrencies as legal tender in Uganda. Such aren’t issued or regulated by the Government of Uganda or the Bank of Uganda.”
In other words, as an investor in cryptocurrencies, you will be responsible for your actions. The government has no role to play. And while exchanges like Binusu, CoinField, and Binance Uganda have emerged recently, the Finance Minister also talked about such trading platforms.
He further added no companies have been licensed to sell or trade cryptocurrencies in Uganda:
“The government of Uganda has not licensed any organization in Uganda to sell crypto-currencies or to facilitate the trade-in cryptocurrencies and so these organizations are not regulated by the Government or any of its agencies”
The emphasis has been on protecting the citizens of Uganda.
In another news, we discovered the Uganda Free Zones Authority (UFZA) is away from such restrictions. They issued license to a blockchain technolofy firm, and people are free to trade bitcoin only when the zone is fully functional.