Shocking News: Bank Of Uganda Bans Crypto-Fiat and Fiat-Crypto Transactions

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The Uganda crypto community was shocked to wake up to shocking news of a statement of Bank of Uganda banning crypto to fiat and fiat to crypto transactions in a letter dated 29/04/2022!

I was also particularly shocked by this news because I personally thought that the Ugandan government was conducive to crypto!

In the letter signed off by Andrew Kawere Ag. Director, it states that the Bank of Uganda has not licensed any institutions in Uganda to sell cryptocurrencies or facilitate the trade of cryptocurrencies!

This is fucking absurd as some years back we had the president of Uganda Museveni as chief guest to the opening of the Africa Blockchain Conference where CZ ie ChangPeng Zhao the CEO of Binance which is the world's biggest crypto exchange was also present.

Details of the Bank of Uganda Announcement

The statement reads

Bank of Uganda has noted press reports and adverts advising the public that they can covert cryptocurrencies into mobile money and vice versa. We are also aware that such a conversion cannot happen without the participation of the payment service providers and or payment system operators. This is to advise that the Bank of Uganda has not licensed any institution to sell cryptocurrencies or facilitate the trade in crypto-currencies. This is in line with the official government position as communicated by the Ministry of Finance, Planning and Economic Development in October 2019.”

Although the BoU does not seem to have attempted to criminalise holding or trading crypto, it appears keen to shut down all businesses and brokers seeking to provide crypto-related services in Uganda. The bank also warned that anyone dealing with such cryptocurrencies would face stern consequences.

“Accordingly, this is to warn all licensed entities under the National Payment Systems Act, 2020 to desist from facilitating cryptocurrency transactions. Bank of Uganda shall not hesitate to invoke its powers under Section 13(l) (b) & (f) of the NPS Act, 2020 for any licensees that will be found in breach of the above directive,” the bank explained.

In that statement above, it is really confusing to the everyday crypto enthusiast as some part of the statement reads that it does not crimilaize holding crypto and the other part says those dealing with such cryptocurrencies would face stern warning!

Let me quote it below.

Although the BoU does not seem to have attempted to criminalise holding or trading crypto, it appears keen to shut down all businesses and brokers seeking to provide crypto-related services in Uganda. The bank also warned that anyone dealing with such cryptocurrencies would face stern consequences.

For the folks who studied law, what does the above statement mean to an ordinary crypto folk?

I can assure you that I am as confused as my other crypto enthusiasts in space and people are now looking for alternative ways of converting fiat to crypto and crypto to fiat that won't be criminal as the government stated!

Does it mean that people can now unleash the full power of peer to peer transactions without needing the thridaparties(exchanges) that the government wants to shutdown as stated in the circular above?

You can read the full circular of the Bank of Uganda statement from this tweet

Anyway we are all waiting for more on this development in the following days, I am closely watching and will keep giving updates on this.

Love
Jarau Moses

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10 comments
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Whoever is directly controlling the V2K told me to kill myself.
They told me if I killed myself now it would save the lives of countless others.
Saying the longer I wait to kill myself the more people will suffer.


They are reckless and should have shown the proper media what they had before taking me hostage for 5 years. I know there are many in prison that dont deserve to be there because of this. Your stay in prison will not be fun @battleaxe and friends. People are going to want you dead when they find out what you did. I hope you die a slow painful death. You sick mother fuckers.

https://peakd.com/gangstalking/@acousticpulses/electronic-terrorism-and-gaslighting--if-you-downvote-this-post-you-are-part-of-the-problem

Its a terrorist act on American soil while some say its not real or Im a mental case. Many know its real. This is an ignored detrimental to humanity domestic and foreign threat. Ask informed soldiers in the American military what their oath is and tell them about the day you asked me why. Nobody has I guess. Maybe someone told ill informed soldiers they cant protect America from military leaders in control with ill intent. How do we protect locked up soldiers from telling the truth?
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Hit the people who could benefit most from crypto . So many African governments are just corrupt scum, it makes you wonder if they actually want to help their people out of poverty.

hope youre well mate!

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It is all just confusing, as another country in Africa legalised Bitcoin ie Central African Republic, ours is doing the opposite!

I am sure it will be sorted soon as the statement is confusing or maybe they just wanted to warn the public as there are many crypto scams at the moment!.

I am fine mate, longtime no see hehe

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The move emphasizes that people need to find ways to live independent of the centralized bank.

I find the move foolish. I keep my cryptocurrency accounts separate from my fiat currency accounts. To date the only time that move funds between the two accounts is to pay taxes.

From my point of view. This type of move simply makes it harder to pay taxes. So, I guess, if you want to pay your taxes in Uganda, you will have to barter your crypto for local currency then pay the taxes.

!hivebits

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I think this move is in place so that crypto transactions can be taxed as crypto currently ain't being taxed here!

I guess they are going to come up with a system that can track these transactions for the benefit of collecting taxes!

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It couldn't possibly be that Ugandan debt is almost entirely owned by the Chinese who came in and bought the country essentially, could it? Dec. 27 2021 WSJ: Uganda Finds China’s Leverage Is in the Fine Print of Its Lending

Probably has nothing to do with the fact that China has explicitly made clear their anti-crypto stance in favor of state-controlled authoritarian cbdcs.

Related: This propaganda piece pushed by Chinese state media about BRI in Uganda

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It is just so absurd the way they did this basically all apps including chipper cash are all affected yet they have been heavily promoting their crypto services. Luno is only doing deposits and withdrawals by bank deposit strictly

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First of all welcome to Hive/Leofinance, thanks for joining.
Let us wait for further announcements on this Bank of Uganda matter, hopefully in the next few days we shall receive clear info.

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