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Bank of Uganda’s deputy governor issued a public warning against investments in unregulated cryptocurrencies, as there are limited legal protections in this sector.

According to Ugandan daily New Vision, today the bank’s deputy governor — Dr. Louis Kaskende — expressed his opinion regarding crypto trading at a Town Hall dedicated to educating the public about the institution’s activities and purpose.

Kaskende went on about the risks of crypto trading and adoption at the meeting stating: 

“Let me state clearly that the online cryptocurrency businesses are not regulated at the moment and therefore carry a significant risk of loss of savings, with no recourse to protection or insurance by government, like is the case with regulated financial institutions such as commercial banks.”

He also went on to say that the central bank lacks a broad oversight of all financial services firms and institutions, supervising mostly commercial banks, credit institutions, foreign exchange bureaus, and money remittance service providers.

In other recent crypto developments, Uganda’s president, Yoweri Museveni, will be officiating the 2019 Africa Blockchain Conference this July. The conference will be dedicated to sectors and matters from the world of fintech, payment systems, and the future of education.

The charity division of popular exchange Binance signed this May a Memorandum of Understanding with a non-governmental organization from Uganda which aims to improve local education. The exchange also opened services last year in the country.

Featured image: CCN

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