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Central Bank of Uganda warns payment service providers to desist from Cryptocurrency

By Melanie Aanyu,

The Central Bank of Uganda has warned all licensed entities under the national payment systems act 2020 to desist from facilitating crypto currency transactions or risk losing their licenses.

In a circular dated April 29th, signed by the Deputy Director National Payment Systems Secretariat at Bank of Uganda Andrew Kawere the bank noted that there have been press reports and adverts advising the public that they can convert crypto currencies into mobile money and vise versa.

The circular further states that such a conversion cannot happen without the participation of payment service providers and or payment system operators.

It further says the bank has not licensed any institutions to sell crypto currencies or facilitate the trade.

The Central bank cautioned the public that it shall not hesitate to invoke powers under section 13(1) b and (f) of the nps act, 2020 for any licences that shall be found in breach of the directive.