Uganda Central Bank’s Deputy Governor Warns the Public Against Unregulated Cryptocurrency Institutions

June 28, 2019 10:13 AM UTC

 

Bank of Uganda’s deputy governor, Dr. Louis Kaskende, has issued a warning to the public against unregulated cryptocurrency businesses which he revealed has no protection by the government to citizens involved in such venture. This was disclosed in a report from a source on June 28.

Per the report, the deputy governor of Bank of Uganda, made the comment on unregulated cryptocurrency exchanges during a Town Hall meeting in Masaka, held to educate the public on the activities and roles the institution performs.

Kaskende underlining the risks involved in cryptocurrency trading and adoption, disclosed that:

“[…] 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 government, like is the case with regulated financial institutions such as commercial bank.”

He also disclosed that the central bank does not have a comprehensive information regarding every financial services providing businesses— which include cryptocurrency ventures— in the country, as the main focus of the central bank is directed to commercial banks, credit institutions, Foreign exchange bureau’s and money remittance services providers.

Earlier this month, the Ugandian president, Yoweri Museveni, was scheduled to officiate in the African Blockchain Conference, devoted to prepare Africa for the “Fourth Industrial Revolution” this July.

In another report in May, the charity arm of leading cryptocurrency exchange Binance in collaboration with the Uganda-based non-governmental organization signed a Memorandom of Understanding (MOU), to help improve local education.

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