Court rules on digital coin transactions in Uganda

Kampala, Uganda | THE INDEPENDENT | The High Court in Kampala dismissed an application which sought to quash a Bank of Uganda directive that barred licensed entities and individuals from facilitating crypto transactions.

In his ruling, Justice Musa Ssekaana insisted that the central bank’s crypto prohibition does not amount to an infringement on property rights.

Instead, the directive is an attempt by the central bank not to legalize the “undefined system as a payment instrument in Uganda.”

In May 2022, the BOU warned parties disregarding its directive that it will not hesitate to invoke “its powers under Section 13(l) (b) & (f) of the NPS Act, 2020 for any licensees that will be found in breach of the above directive.”