Uganda Central Bank Says It Is Open to Crypto Firms Participating in Regulatory Sandbox

The Bank of Uganda (BOU) has hinted that it is open to the idea of crypto companies joining its regulatory sandbox. The central bank’s position is the result of deliberations with a team from the Blockchain Association of Uganda (BAU).

BAU members were asked to familiarize themselves with the sandbox regulations

Uganda’s central bank, after consultation with the BAU team, stated that it is open to the idea of having crypto companies participate in the regulatory sandbox. As a result, the central bank has asked BAU members who may wish to participate in the sandbox to familiarize themselves with the NPS Sandbox Regulation 2021 and the BOU Sandbox Framework.

In aletterto BAU chair Kwame Rungunda, Andrew Kawere of the Central Bank hinted that deliberations between the bank and the BAU team had influenced the position on crypto firm participation Kawere also shared information praised the proposal to share information. He said.

Bank of Uganda welcomes your proposal to share knowledge with our technical team on crypto business models and whether some use cases are eligible for testing under the Regulatory Sandbox.

In his letter, Andrew Kawere also advised Kwame Rungunda to contact another central bank official, Alex Ochan, for the purpose of scheduling technical discussions.

Shaping Crypto Opportunities in Uganda

As reported by Bitcoin.com News, the BOU launched the Fintech Regulatory Sandbox in June 2021, and at the time the central bank said this would “promote innovation in financial services, attract capital and funding for fintech companies, and provide shared learning opportunities for innovators and regulators.”

Meanwhile, in a tweet after receiving the letter from the central bank, BAU said it looked forward to working with the central bank and other stakeholders.”

“shaping crypto opportunities in Uganda while proactively mitigating potential risks and ensuring consumer protection.