Uganda Financial Intelligence Agency asks the government to formulate crypto regulatory framework

Uganda's Financial Intelligence Agency (FIA) said the country's finance ministry wants it to help establish a regulatory framework for crypto service providers. According to the FIA, this call for government intervention stems from the fact that the Ugandan crypto industry has not previously followed a call asking industry players to sign up. Terrorism Concerns Separately, the Financial Intelligence Directorate, citing Sydney Asubo, the executive director of the FIA, explains in a recent report why the Ugandan government wants to be involved in drafting regulations. The report says: Virtual asset service providers are currently in category 16 most vulnerable to terrorist financing and money laundering. Last year we gave them a month to register, but only a few responded. In December 2020, the FIA published a letter describing an amendment to the anti-money laundering law classifying virtual asset service providers (VASPs) as "responsible persons". This meant that assets such as cryptocurrency exchanges or other crypto asset service providers were "now subject to the oversight and control of the FIA." Protecting Ugandans from Crypto Scams Despite this change that required the VASP to register by December 27, 2020, only a few responded. According to the FIA, this incompatibility limits the ability to "protect users and the economy in general." Meanwhile, the report also explains how the proliferation of "pyramid and cryptocurrency companies with outstanding ROI" has shaped the FIA's view of the crypto industry. Many Ugandans, like others in Africa, have become victims of crypto scams. The FIA believes that if crypto service providers are put under their control, they can both fight and reduce the number of crypto fraudsters. Do you agree that the regulations will end or mitigate crypto scams in Uganda? Let us know what you think in the comments section below.

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