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Ugandan Government Asked People to Be Cautious in Dealing with Cryptocurrency

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Ugandan Government Asked People to Be Cautious in Dealing with Cryptocurrency

KAMPALA- 21 Nov 2018, minister of state for finance, David Bahati warned Ugandan citizens dealing with the cryptocurrency to be cautious with the exchange companies they use. This is due to the reason these companies are unauthorized and lack regulations for trading.

He said “it is true that the central bank issued a statement warning people. As a government we expect everybody to be responsible and not just invest money in anything you are not sure of.” He further said “in October, the cabinet approved the national payment system bill. We intend to bring it to the parliament next month so that it caters for all these forms of digital financial transactions.”

This statement was put on by Bahati while responding back to the issue raised by Mathias Mpunga, a mask municipality MP who highlighted his concern over many Ugandan people investing in the digital currency and falling in prey of scammers as there is no law governing their operation while making the reference of a pyramid scam, Telex free which had fleeced public as well as member of parliaments.

Mpunga further asked the ministry that, as there is no regulation for this kind of trading, the government should come forward to form an impactful bill in the matter considering cryptocurrency as a time bomb that can burst out soon.

Answering the legislator, Bahati said that government is aware of the potential threat and has already issued a warning against them through the bank of Uganda earlier this year where bank stated that “bitcoin and all these agencies are not under their control. We advised Ugandan to go slow and be cautious.” he further added, “if you are trading in digital currencies, we warn you not to trade in areas which are not regulated.”

Aura south MP, Odongo Otto also backing the Mpunga statement asked finance minister to go beyond warnings and protect citizens in the absence of the laws and regulation. He also said, “I am currently privy to a case in the court of one of the pyramid scams” known as D9 that has defrauded many including members of parliament “yet there is no regulation” to defend people against such scams.

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