The Bank of Uganda (BOU) has hinted it is open to the idea of crypto companies joining the regulatory sandbox. The position of the central bank comes after deliberations with a team from the Blockchain Association of Uganda (BAU).
BAU Members Asked to Get Used to Sandbox Regulations
The Uganda Central Bank has indicated that after talks with a team from the Blockchain Association of Uganda (BAU), it is now open to the idea of crypto enterprises participating in the regulatory sandbox. As a result, the central bank asked the BAU members interested in joining the sandbox to get familiar with the NPS Sandbox Regulations of 2021 and the BOU Sandbox Framework.
In a letter sent to Kwame Rungunda, the BAU chairperson, the central bank’s representative Andrew Kawere indicated that the deliberations influenced the position of the participating crypto companies. Kawere also lauded the idea of sharing information.
“Bank of Uganda welcomes your proposal to share knowledge with our technical teams on the crypto business models and whether some use cases are eligible for testing under the Regulatory Sandbox,” Kawere said.
Kawere went ahead and asked Kwame Rugunda to reach out to another central bank official, Alex Ochan, for further technical discussions.
Defining the Opportunity for Crypto in Uganda
BOU launched the first fintech regulatory sandbox in June 2021 and indicated that it would “promote financial services innovation, attract capital and funding for fintech firms, and provide shared learning opportunities for the innovators and regulators.”
After receiving the letter, BAU said it is looking forward to working with the central bank and stakeholders in helping shape the opportunity for the crypto industry in Uganda. Furthermore, it will proactively mitigate the potential perils and promote consumer protection.