Digital asset companies will be able to participate in the regulatory sandbox operated by the Bank of Uganda. Regulators called on top blockchain advocates in the country to share their knowledge of proper digital asset integration a month after banning financial institutions from promoting Bitcoin transactions.
In a letter to the Uganda Blockchain Association dated June 1, the bank said, “We share our knowledge of the crypto business model with our technical team and are some use cases eligible for testing under regulatory sandboxes? “Please,” he said, welcoming the organization’s proposal.
— KAA (Kampala-related supporter) (@ KAAdvocates) June 2, 2022
Central Bank Release A sandbox from June 2021 a year ago. At the time, the initiative said, “We will drive innovation in financial services, attract capital and funding to fintech companies, and provide innovators and regulators with shared learning opportunities.” It will target the promotion of electronic payments, digital financial services, and financial inclusion, he said. The announcement did not mention digital assets or blockchain technology.
The sandbox invitation takes place just one month after the bank bans all financial institutions from engaging in or promoting digital asset transactions.
In May, Andrew Kawere, director of domestic payment systems for banks, issued a statement claiming that he focused on the growing number of payment service providers being promoted by banks. Digital asset trading.. Kawere banned such activities and reminded institutions that the central bank did not authorize settlement companies to engage in digital currency transactions.
However, digital currencies are not illegal in Uganda. As with many other African countries, the ambiguous regulations allow citizens to own, sell, or buy Bitcoin.
Earlier this year, Treasury Minister David Bachty said one of the biggest challenges for the government was to regulate entities that offer Bitcoin without the necessary licenses.
“The challenge is for the operators of such schemes to register as financial institutions, but when they stand up, their operations are different,” he says. I got it..
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