Uganda’s Financial Intelligence Authority (FIA) says it wants the country’s Finance Ministry to help formulate a regulatory framework for crypto service providers. According to the FIA, this call for the government’s intervention has prompted by the Ugandan crypto industry’s failure to comply with an earlier plea for industry players to register.
Furthermore, in a recent report—which quotes Sydney Asubo the FIA executive director—the financial intelligence body explains why it wants the Ugandan government’s involvement in crafting the regulation. The report states:
Virtual assets service providers are now in category 16 of the most vulnerable to terrorism financing and money laundering. Last year we gave them one month to register but only a few responded.
In December 2020, the FIA published a letter revealing an amendment to the Anti-Money Laundering Act which classed Virtual Asset Service Providers (VASP) “as accountable persons.” This, therefore, meant entities like cryptocurrency exchanges or other crypto asset service providers were “now subject to the supervision and monitoring by the FIA.”