The Financial Intelligence Authority (FIA) of Uganda has called on the country’s Ministry of Finance to set up a regulatory framework for the cryptocurrency industry. The FIA made this call after several cryptocurrency providers failed to comply with the registration requirements that were earlier made.
The FIA Executive Director, Sydney Asubo, has disclosed the reasons for wanting the government to aid the formation of the policies. According to the reports, Asubo was quoted as saying this.
“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”
It should be recalled that in the last month of 2020, the FIA publicised a message that classified all Virtual Asset Service Providers (VASP) “as accountable persons.” The publication revealed an amendment of the Anti-Money Laundering Act. What it ultimately meant was that all crypto services providers and exchanges in the country were subject to the scrutiny of the FIA.
FIA Expresses the Desire to Protect Ugandans From Scams
The December 2020 amendment that compelled VASPs to register with the authority has not been well responded to. The FIA believes that the unresponsiveness of the entities isn’t aiding its desire to protect citizens.
The agency further reiterated the influx of sevey scammy firms and pyramid schemes that had offered Ugandan investors lofty returns of investment. The ponzi schemes that scammed several Ugandans has moulded the opinion of the FIA about cryptocurrencies and its related industries.
Crypto scams have become a huge problem in the region as well as other African countries. The FIA intends to secure the interests of the citizenry by regulating the cryptocurrency agencies in the nation. The decision is in a bid to prevent recurrences of such kind.