Crypto Firms are Welcome to the Regulatory Sandbox of Bank of Uganda

The Bank of Uganda is considering allowing cryptocurrency businesses to participate in its Regulatory Sandbox and has invited members of the Blockchain Association of Uganda (BAU) to share their expertise with the central bank. A June 1 letter from the bank to Kwame Rungunda, the BAU’s chairperson, mentioned a meeting between the two parties in early May. Before moving on to technical conversations, the central bank recommended the country’s crypto advocacy group brush up on the sandbox regulations. We look forward to working with @BOU_Official and all other stakeholders in shaping the opportunity for crypto in Uganda, while proactively mitigating the potential risks and ensuring consumer protection. @CmaUganda @FitspaUG https://t.co/L8CMi4Fo5f — Blockchain Association of Uganda (BAU) (@blockchainug) June 4, 2022 Regulatory Sandbox Framework The bank created a regulatory sandbox framework in June 2021, allowing financial technology (FinTech) firms to test “innovative financial solutions” in a regulated environment to increase the country’s adoption of electronic payments and other digital financial services. The Bank of Uganda’s recent letter appears to be a U-turn in its stance on bitcoin. The bank issued a warning on cryptocurrencies in late April, notifying all payment service providers that permitting crypto transactions would expose the country to money laundering and scams. According to the statement, any provider, such ...