The Bank of Uganda (BOU) has hinted that it is open to the idea of ​​crypto businesses participating in the regulatory sandbox. The central bank’s position follows its 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 has said that after discussions with the BAU team, it is now open to the idea of ​​crypto firms participating in its regulatory sandbox. Accordingly, the central bank has asked BAU members who wish to join the sandbox to familiarize themselves with the NPS Sandbox Regulations 2021 and the BOU Sandbox Framework.

in a letter Addressing Kwame Rungunda, Chairman of the BAU, the central bank’s Andrew Kawere hinted that deliberations between the bank and the BAU team influenced his position on the involvement of crypto firms. Kawere also praised the information sharing proposal. He said:

The Bank of Uganda welcomes your proposal to share knowledge with our technical teams about crypto business models and whether any use cases are eligible for testing in the regulatory sandbox.

In the letter, Andrew Kawere also advised Kwame Rungunda to contact another central bank official, Alex Ochan, in order to schedule technical discussions.

Shaping the crypto opportunity in Uganda

What reported Per Bitcoin.com News, the BOU launched its fintech regulatory sandbox in June 2021 at which time the central bank said this would “promote innovation in financial services, attract capital and financing for fintech companies, and provide shared learning opportunities for fintech companies.” innovators and regulators. .”

Meanwhile, in its tweet after receiving the letter from the central bank, the BAU said it looked forward to working with the central bank and other stakeholders “to shape the crypto opportunity in Uganda by proactively mitigating potential risks and ensuring the consumer protection. ”

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Terence Zimwara

Terence Zimwara is an award-winning Zimbabwean journalist, author and writer. He has written extensively on the economic woes of some African countries and how digital currencies can provide Africans with a way out.