Uganda is seeking to foster the growth of the blockchain and crypto industry by strengthening its regulatory mechanisms. Hence, the East African country has reportedly created a committee of experts to study cryptocurrencies.
The government has advised its citizens to beware of the rising crypto scams in the country. However, it still believes that crypto’s underlying blockchain technology can greatly provide solutions to many of the country’s challenges.
David Bahati, the State Minister of Finance, addressed the National Assembly on this issue. He stated that the government created the Expert National Taskforce on Fourth Industrial Revolution to understand emerging technologies better. The taskforce also advises the government on how to exploit technologies such as the Internet of Things, quantum computing, blockchain technology, artificial intelligence and many others.
Bahati also stated that blockchain is a disruptive technology which can be controlled to revolutionize and improve business processes. The committee is expected to provide proposals on how to regulate cryptocurrencies and apply them in the Ugandan financial system. He warned the public about investing in cryptos and added that the industry is not regulated by the government.
He also mentioned the steps the government has taken towards legalizing crypto in the country. Firstly, amending the Penal Code Act of Justice to criminalize crypto Ponzi schemes and licensing legit crypto firms by the Uganda Registration Services Bureau. The Bank of Uganda and the Office of the President educate the public on crypto and how to spot scams. Also, the National Assembly is in the process of amending the Anti-Money Laundering Act to bring cryptos under the scope of the Financial Intelligence Authority.
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