Uganda To Introduce New Crypto Regulatory Framework As Increased Bitcoin Scams Plague Industry

Uganda—a mid-sized country located in East Africa is set to introduce a regulatory framework for cryptocurrencies whose aim will be to protect its citizens from being defrauded by the many crypto scams currently present online. The news comes on the backdrop of reports indicating that thousands of Ugandans have already been defrauded online.

One of the Ponzi schemes that have already taken advantage of unsuspecting citizens of the African country includes D9. According to David Bahati from the Planning and Finance Ministry, the scheme had promised to make payments to all its members in the form of crypto assets such as bitcoin.

David stated that his ministry had already finished drafting the bill which deals with all matters pertaining to national payments and is expected to be presented to the country’s parliament next month for debate and approval.

Representatives Appeal For Regulation

The National Payment System Bill was approved by the country’s Cabinet in October. Bahati stated that the Cabinet intends to introduce the bill to the legislature in December so that it will help ensure that all digital transactions are catered for. This is meant to ensure that its citizens are protected and that they know what to do in case they suspect that they have fallen prey to a Ponzi scheme.

Bahati stated this when addressing the assembly on November 21st after many members of the legislature noted that the lack of regulation in Uganda was worrying given the high rate at which the residents of the country had started to adopt and use cryptocurrency in many of their online transactions.

The cryptocurrency industry in the country has been growing at a steady pace in the last few years, which has led to many of its citizens being duped by all manner of schemes. David, however, did not provide specific details on what will be included or covered in the laws that are being proposed by the cabinet.

David had earlier on been queried by a member of the assembly—Mathias Mpuuga, who wanted to know how some cryptocurrency dealers and exchanges had been allowed to operate in the country yet there was no framework in place to regulate them. One of the exchanges listed by the MP was Telex Free, which was alleged to be a pyramid scheme that was being used to fleece the local citizens of their hard earned money.

Mpuuga went on to state that some members of parliament had also fallen prey to the scheme. In his statement to the assembly, Mathias noted that some of the agencies operating in the country claimed to deal in tokens and coins such as bitcoin, namecoin, and ripcoin. The main challenge, therefore, arose in the fact that as these dealers were allowed to continue operating, they did so without any kind of supervision from the government.

The MP concluded by stating that it was time for the government to step in and regulate the industry, as this was a time-bomb waiting to explode.

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