Ugandaâ€™s Financial Intelligence Authority (FIA) says it wants the countryâ€™s Finance Ministry to help formulate a regulatory framework for crypto service providers. According to the FIA, this call for the governmentâ€™s intervention has prompted by the Ugandan crypto industryâ€™s failure to comply with an earlier plea for industry players to register.
Furthermore, in a recent reportâ€”which quotes Sydney Asubo the FIA executive directorâ€”the financial intelligence body explains why it wants the Ugandan governmentâ€™s involvement in crafting the regulation. The report states:
In December 2020, the FIA published a letter revealing an amendment to the Anti-Money Laundering Act which classed Virtual Asset Service Providers (VASP) â€œas accountable persons.â€ This, therefore, meant entities like cryptocurrency exchanges or other crypto asset service providers were â€œnow subject to the supervision and monitoring by the FIA.â€
Protecting Ugandans From Crypto Scams
Still, despite this amendment calling VASP to register by December 27, 2020, only a few have responded. According to the FIA, this non-compliance limits its ability â€œto protect users and the larger economy.â€
Meanwhile, the report also explains how the proliferation of â€œpyramid and cryptocurrency companies that offer out-of-the-world returns on investmentâ€ has shaped how FIA views the crypto industry.
Many Ugandan citizens have, just like many others across Africa, been victims of crypto scams. The FIA believes it can fight as well as reduce the number of crypto scammers if crypto service providers are placed under its supervision.
Do you agree that regulation will end or reduce the number of crypto scams in Uganda? Tell us what you think in the comments section below.
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.