The Financial Intelligence Authority of Uganda (FIA) says it wants the country’s finance ministry to help create a regulatory framework for crypto service providers. According to the FIA, this call for government intervention has prompted a failure by Uganda’s crypto industry to comply with an earlier petition for registration of industry players.
Worry about terrorism
Also, recently Report good– which quotes FIA Executive Director Sydney Asubo – The financial intelligence body explains why it wants the Ugandan government’s involvement in rulemaking. The report states:
Virtual property service providers are now in the category of 16 most vulnerable to terrorism financing and money laundering. Last year we gave them a month to register but only a few responded.
In December 2020, the FIA published Letter Revealing amendments to the Anti-Money Laundering Act classifying Virtual Asset Service Providers (VASPs) as “accountable persons”. Therefore, this means that entities such as cryptocurrency exchanges or other crypto asset service providers are “now subject to supervision and monitoring by the FIA.”
Protect Uganda from crypto scams
Nevertheless, despite this amendment VASP has been asked to register by December 27, 2020, only a few have responded. According to the FIA, this non-compliance limits the ability to “protect users and the larger economy”.
At the same time, the report also described how “pyramid and cryptocurrency companies that offer returns outside the world on investment” have shaped how the FIA views the crypto industry.
Many Ugandan citizens, like many others throughout Africa, have fallen victim to it Crypto scam. The FIA believes that if crypto service providers are kept under its supervision it can fight alongside reducing the number of crypto scammers.
Do you agree that the regulation will eliminate or reduce the number of crypto scams in Uganda? Tell us what you think in the comments section below.
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