The Financial Intelligence Authority (FIA) has expressed frustration over failure by cryptocurrency operators to register with the government agency.
Cryptocurrency trading, also known as mining, is a growing global wave which is increasingly tilting the traditional global financial system.
But Sydney Asubo, the FIA executive director, says they have been asking cryptocurrency operators to register but very few have responded.
“Virtual assets service providers are now in category 16 of the most vulnerable to terrorism financing and money laundering. In 2020, we gave them one month to register but only a few responded,” he says.
Asubo said there is a need to know people and organisations that operate virtual asset companies to protect users and the larger economy.
Ugandan enterprises urged to explore regional oil and gas opportunitiesThe Ministry of Finance maintains a statement on its website warning the public against cryptocurrencies.
“The government of Uganda does not recognise any crypto-currency as legal tender in Uganda. The general public is further advised of the following risks associated with crypto-currencies.” the statement reads.
“Most crypto-currencies such as Bitcoin and Ethereum are not backed by assets or government guarantees. Therefore holders of these cryptocurrencies are fully exposed to the risk of loss or diminishing value as the issuers are not obliged to exchange them for legal currency or other value.”
A similar warning is echoed by Bank of Uganda which maintains on its website that investing in a digital Currency is taking a risk in the financial space where there is neither investor protection nor regulatory purview.
