Bank of Uganda has warned the public against using cryptocurrencies to transact businesses, saying the Central Bank has not licensed any company to offer the services.
Mr Andrew Kawere, the director of national payments system, in a notice dated April 29, said the Central Bank has noted with concern some entities advertising conversion of cryptocurrencies into mobile money and vice versa, which he said is illegal.
“Bank of Uganda has noted press reports and adverts advising the public that they can covert crypto currencies into mobile money and vice versa. We are also aware that such a conversion cannot happen without the participation of the payment service providers and or payment system operators. This is to advise that Bank of Uganda has not licensed any institution to sell cryptocurrencies or to facilitate the trade in crypto-currencies. This is in line with the official government position as communicated by the Ministry of Finance, Planning and Economic Development in October 2019,” a circular signed by Kawere reads.
Kawere warned that anyone or entity involved in dealing in such cryptocurrencies will face stern consequences.
“Accordingly, this is to warn all licensed entities under the National Payment Systems Act, 2020 to desist from facilitating crypto currency transactions. Bank of Uganda shall not hesitate to invoke its powers under Section 13(l) (b) & (f) of the NPS Act, 2020 for any licensees that will be found in breach of the above directive,” Kawere said in the notice.