Financial Intelligence Authority to regulate cryptocurrencies in Uganda (VIDEO)

Nassali Fatiah

Nassali Fatiah

, Business, News

The Financial Intelligence Authority is to review the anti-money laundering law to incooperate crypto currency assets.

This follows guidance from the Financial Action Task Force (FATF), an inter-governmental body mandated to set regulatory and operational measures for combating money laundering, terrorist financing internationally.

The emergence of bitcoin and other crypto currencies which can be described as “a digital currency and online payment system” has posed a challenge to financial regulatory authorities.

Uganda was advised by the financial Action Task Force (FATF), to make Cypto exchanges persons accountable to the anti – money laundering laws.

More to that all countries are supposed to regulate all the arising technologies including all the visual asset providers and this calls for registrations of all such service provider.

Deputy FIA director Michael Tukei says, “We have started the process by writing a proposal and we are going to present it to the board after it will be presented to parliament.”

Currently the developers of block chain and cryptocurrencies still need time to convince governments and other stakeholders on how its decentralized distributed ledger databases can be maintained secure and clean.

For instance, while transactions made using cryptocurrencies are transparent, the users of cryptocurrencies remain anonymous (only identified by virtual identity) and one user single user can have as many virtual identities as they want.

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