The Bank of Uganda is considering allowing cryptocurrency businesses to participate in its Regulatory Sandbox and has invited members of the <a href="https://blockchain.or.ug/" target="_blank" rel="nofollow noopener">Blockchain Association of Uganda</a> (BAU) to share their expertise with the central bank.  A June 1 letter from the bank to Kwame Rungunda, the BAU's chairperson, mentioned a meeting between the two parties in early May. Before moving on to technical conversations, the central bank recommended the country's crypto advocacy group brush up on the sandbox regulations.

https://twitter.com/blockchainug/status/1532970713119920128
<h2>Regulatory Sandbox Framework</h2>
The bank created a regulatory sandbox framework in June 2021, allowing <a href="https://www.cryptoknowmics.com/news/swinburne-university-partnered-with-financial-technology-firms-to-bring-web3-firms-to-class/" target="_blank" rel="noopener">financial technology</a> (FinTech) firms to test "innovative financial solutions" in a regulated environment to increase the country's adoption of electronic payments and other digital financial services. The Bank of Uganda's recent letter appears to be a U-turn in its stance on bitcoin. The bank issued a warning on cryptocurrencies in late April, notifying all payment service providers that permitting crypto transactions would expose the country to money laundering and scams.

According to the statement, any provider, such as a bank or fintech company, found to be aiding the trade of cryptocurrency would have their financial license revoked. Crypto adoption in Africa is gaining traction, attracting the attention of several venture capital firms and crypto firms. Crypto usage in Africa surged by approximately 1,200 percent between 2020 and 2021, with nearly 2% of Ugandans using it.

Crypto Firms are Welcome to the Regulatory Sandbox of Bank of Uganda

The Bank of Uganda is considering allowing crypto businesses to participate in its Regulatory Sandbox and has invited members of the Blockchain Association of Uganda to share their expertise.

Usha is a diehard crypto enthusiast and has been actively writing on different facets of the blockchain and crypto world. She has authored many research articles on cryptocurrency and aims to provide informational and quality content to readers. She firmly believes that crypto has a great potential to redefine the world of finance and blockchain.

Crypto Firms are Welcome to the Regulatory Sandbox of Bank of Uganda

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