Uganda Warns Citizens Against Using Crypto Platforms

Wilfred Michael 

Wilfred Michael

News reporter

28 June 2019,
10:48
Uganda Warns Citizens Against Using Crypto Platforms

Uganda is one of the many countries in Africa where no legislation exists for the use of cryptocurrencies. Instead, the usual message is for citizens to stay away from these new payment tools for fear that they lose their monies.

Unsurprisingly, the message was not different when Dr. Louis Kasekende the Deputy Governor at the Bank of Uganda addressed the audience at a Town Hall Meeting held in Masaka, a city in the central part of the country.

A local news agency, New Vision noted that the purpose of the meeting was to educate the public on the activities of the central bank, and then quotes Dr. Louis Kasekende as telling the audience,

"The online cryptocurrency businesses are not regulated at the moment and therefore carry a significant risk of loss of savings, with no recourse to protection or insurance by the government."

No doubts, Kasekende was reminding the people that unlike the case "regulated financial institutions such as commercial banks,” the Bank of Uganda would not reimburse anyone for the loses they incur while trading cryptocurrencies on platforms that they don't regulate.

Responding, perhaps, with regards to Facebook's recently announced digital currency, Libra, the top official also took the opportunity to remind the audience that the Bank of Uganda does not have jurisdiction over all financial institutions.

Kasekende reaffirmed that they only supervise commercial banks, credit institutions, micro-deposit taking institutions, foreign exchange bureaus, and money remittance services.

Meanwhile, the latest warning regarding the use of crypto platforms by the Bank of Uganda's Deputy Governor mirrors similar messages delivered by central banking authorities in Malawi and Myanmar in recent times.

It also comes amid earlier rumors that the country would soon introduce legislative guidance for the use of cryptocurrencies within its territory.

 

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