Uganda to Regulate Crypto Industry Seeing the Rise in the Number of Bitcoin Scams
With the entrance of binance, the world’s biggest digital currency exchange in the country, Ugandan cryptocurrency market has shown a great spike. It has reported over 40000 sign up during its 1st week of operation, regardless of the repeated warning by the Bank of Uganda against the adoption of the unregulated currency.
In response to this, now Uganda government is willing to regulate crypto asset sensing the rise in the number of Bitcoin-related scams in the country. As per the Latest report from the United African Institute of Preservation of Crime and Treatment of Offenders (UNAFRI) the group is set to offer guidance on the regulation of digital assets in the industry within its boundary till December.
The government of Uganda has declared that the regulation will target bitcoin-related startups and investment schemes within the country. According to the Ugandan finance minister David Bahati, there is a number of cases where Ugandans have fallen victim for various Ponzi schemes, including a current fraudulent scheme of the D9 Club, where investor are tempted with fake promises to pay the high return on investments. However, the company collapsed and the founders disappeared taking money from investors.
David added, considering such cases, now the government has finalized a new national payment bill which will be released in parliament for approval in next month.
This year in July, UNAFRI has organized its 1st roundtable conference in Naguru discussing the regulatory framework for virtual currencies transactions. The main focus of the roundtable conference was to create virtual currency awareness among citizens and driving some effective measure to regulate the new form of digital currency.
Here it is notable in the UNAFRI event, if Uganda prepares the regulatory model for cryptocurrencies and design the legislative framework for the same, it will become the first country of the African continent to move in this direction. The report further predicts that there is a strong demand for cryptocurrencies as the transactions levels are increasing in Uganda, Ghana, Nigeria and other African countries.
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