The Bank of Uganda (BOU) has hinted that it is open to the idea of crypto firms participating in the regulatory sandbox. The central bank’s position follows its deliberations with a team from the Blockchain Association of Uganda (BAU).
BAU Members Asked to Acquaint Themselves Sandbox Regulations
The Ugandan central bank has said following talks with the team from the BAU, it is now open to the idea of having crypto firms participate in its regulatory sandbox. Consequently, the central bank has asked members of the BAU that may want to join the sandbox to familiarize themselves with the NPS Sandbox Regulations 2021 and the BOU Sandbox Framework.
In a letter addressed to Kwame Rungunda, the chairperson of BAU, the central bank’s Andrew Kawere hinted that the deliberations between the bank and the team from BAU influenced its position on the participation of crypto firms. Kawere also lauded the proposal to share information. He said:
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.
In the letter, Andrew Kawere also advised Kwame Rungunda to contact another central bank official Alex Ochan for the purposes of scheduling technical discussions.
Shaping the Opportunity for Crypto in Uganda
As reported by Bitcoin.com News, the BOU launched its fintech regulatory sandbox in June 2021 and at that time the central bank said this would “promote financial services innovation, attract capital and funding for fintech firms, and provide shared learning opportunities for the innovators and regulators.”
Meanwhile, in its tweet after receiving the letter from the central bank, the BAU said it looked forward to working with the central bank and other stakeholders “in shaping the opportunity for crypto in Uganda, while proactively mitigating the potential risks and ensuring consumer protection.”