The Bank of Uganda, over the weekend has issued a circular to all payments licensees especially mobile money operators to desist from facilitating cryptocurrecy transactions.
The Circular specifically cites conversion of crypto to Mobile Money as one of the prohibited transactions.
A crypto enthusiast in Uganda, Ronald Masiriwa reacting to the news said, “I am no expert when it comes to crypto currency but with the fact that BOU is picking interest in prohibiting its usage with key financial players, it’s high time to consider it’s uniqueness and the need to know more about it.”
Since cryptocurrencies are not regulated by the government or central bank, market participants trade and invest entirely at their own risk in Uganda. For this reason, cryptocurrencies are not backed by assets or government guarantees, and issuers are not required to exchange them for legal currency or other value.
Following restrictions on banks from engaging in cryptocurrency transactions, many Ugandans have resorted to the use of mobile money services to facilitate P2P transactions.
Mobile Money stores funds in a secure electronic account linked to a mobile phone number. Before sending funds, one must confirm that the recipient has a registered mobile money account.
Users can use their mobile money account in a number of ways, including receiving and storing money, sending money to any mobile phone user, sending money to mobile phone users on other local networks, withdrawing cash at any authorised mobile money agent, top-up airtime, pay bills, buy and pay for insurance, and pay employee salaries, airline tickets, school fees, as well as other goods and services.
Discover more from DiutoCoinNews
Subscribe to get the latest posts sent to your email.
