Regulatory Sandbox Participation by Crypto Firms Is Welcome, According to the Central Bank of Uganda

October 28, 2022

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).

Regulatory Sandbox Participation by Crypto Firms Is Welcome, According to the Central Bank of Uganda

It has been suggested by the Bank of Uganda (BOU) that it is amenable to the notion of crypto companies taking part in the regulatory sandbox. Following discussions with a delegation from the Blockchain Association of Uganda, the central bank came to its decision (BAU). Following discussions with the BAU team, the Ugandan central bank declared that it was now considering allowing cryptocurrency companies to take part in its regulatory sandbox. As a result, the central bank has requested that BAU members who would be interested in participating in the sandbox get familiar with the NPS Sandbox Regulations 2021 and the BOU Sandbox Framework.

Andrew Kawere from the central bank made a suggestion in a letter to Kwame Rungunda, the head of BAU, that the discussions between the bank and the BAU team had influenced the bank’s stance on the inclusion of cryptocurrency enterprises. Kawere praised the idea of sharing information as well. In the letter, Andrew Kawere also gave Kwame Rungunda advice to get in touch with Alex Ochan, another central bank officer, to arrange technical meetings.

The BOU launched its fintech regulatory sandbox in June 2021, according to News, and at the time the central bank stated that it would “promote financial services innovation, attract capital and funding for fintech firms, and provide shared learning opportunities for the innovators and regulators.” The BAU said it was looking forward to working with the central bank and other stakeholders “in shaping the opportunities for crypto in Uganda, while proactively reducing the possible dangers and guaranteeing consumer protection” in a tweet it sent out after receiving the central bank’s letter.

Read more: The entire Bitcoin downtrend is due to macroeconomic pressures in the United States.

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