Uganda's financial regulator warned payment service providers not to allow cryptocurrencies in the country.
In a letter, the Bank of Uganda said that it had not licensed any payment provider or operator to sell or facilitate trade usingcryptocurrencies. The bank said that payment providers will have their licenses revoked if they are found selling or facilitating trade.
The Bank of Uganda has noted press reports and advertisements that advise the public that they can convert cryptocurrencies into mobile money. The bank's acting director Andrew Kawere said in a statement that the conversion cannot happen without the participation of the Payment Service Providers and or Payment System operators.
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The Bank of Uganda has not licensed any institution to sell or facilitate the trade incryptocurrencies. This is in line with the official position of the Government and will warn all licensed entities to stop facilitating transactions inCryptocurrencies.
Uganda's stern warning comes about a year after Nigeria once again ordered financial institutions to close down all accounts trading in or operatingCryptocurrencies.
Even as some governments continue to stifle cryptocurrencies, their adoption across Africa is growing rapidly.
The parliament of the Central Africa Republic unanimously passed a bill governing the use of cryptocurrencies one week ago. The CAR is one of the least developed countries in the world, with over five million people, and is rich in resources like diamond and gold. The CAR only has 10% of its population connected to the internet.
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