The central bank of Uganda warns the public the high risk of cryptocurrency

01 Jul, 2019
by Fifi Arisandi
Regulation
The central bank of Uganda warns the public the high risk of cryptocurrency

The central bank of Uganda warns the public about the high risk of cryptocurrencies. 

Welcoming a blockchain conference doesn’t mean a country is wide open to cryptocurrency.

While president Yoweri Museveni is reported to officiate the 2019 Africa Blockchain Conference this July, the deputy governor of the Bank of Uganda just spoke to the public about the risky cryptocurrency trading.

Speaking in a Town Hall meeting in the city of Masaka, Dr. Louis Kaskende warned about crypto trading given its unregulated nature.

“[...] online cryptocurrency businesses are not regulated at the moment and therefore carry a significant risk of loss of savings, with no recourse to protection or insurance by government, like is the case with regulated financial institutions such as commercial banks,” said Kaskende as quoted by Cointelegraph.

He emphasized that the central bank doesn’t have a “comprehensive oversight of all financial services firms and institutions” and that they only supervise commercial banks, credit institutions, foreign exchange bureaus and money remittance service providers.

The statement may come out as the Ugandans seem to have more exposure to cryptocurrency these days. Last May, major crypto exchange, Binance officially signed a memorandum of understanding (MoU) with a local non-governmental organization, which is the start of a collaboration between the two in improving local education.

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