Central Bank of Uganda Says It’s Open to Crypto Firms Participating in Sandbox Regulation CryptoBlog
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 are encouraged to familiarize themselves with the Sandbox Rules
Uganda’s central bank said that following discussions with the BAU team, it is now open to the idea of involving crypto firms in its regulatory sandbox. Therefore, the central bank has asked BAU members who would like 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, BAU Chairman Andrew Kawere from the central bank hinted that the deliberations between the bank and the BAU team influenced his stance on the participation of crypto firms. Kawere also welcomed the offer to share information. He said:
Bank of Uganda welcomes your proposal to share knowledge with our technical teams on crypto business models and whether certain 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, to schedule technical talks.
Shaping Uganda’s Crypto Opportunity
As reported by Bitcoin.com News, BOU launched its fintech regulatory sandbox in June 2021 and at that time the central bank said it would “spur innovation in financial services, attract capital and funding for fintech companies and would provide shared learning opportunities for 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 “to shape the opportunity for crypto in Uganda, while proactively mitigating potential risks and ensuring consumer protection.”
What are your thoughts on this story? Let us know what you think in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. This is not a direct offer or the solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. 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.