The Independent Uganda: You get the Truth we Pay the Price
Kampala, Uganda | THE INDEPENDENT | The Uganda Microfinance Regulatory Authority has blacklisted a cryptocurrency exchange known as Dunamiscoins Resource Centre Ltd. The initial license issued to the company last year has expired, and according to the authority, it will not be renewed.
UMRA, the regulators of Tier 4 Microfinance Institutions and moneylenders in Uganda issued a non-deposit taking Microfinance Institutions License to Dunamiscoins Resource Centre last year, to operate a money lending business. Dumaniscoins also opened up branches in Masaka, Ndeeba, Mbale, Mukono, Lira and Freedom city.
But Edith Tusuubira, the Executive Director of Uganda Microfinance Regulatory Authority says that during its operations, Dunamiscoins Resource Ltd violated sections of the Tier 4 Microfinance Institutions and Money Lenders Act, 2016.
The conclusion is based on information that Dunamiscoins carried out a media campaign asking people to team up and partner with them after promising them 40 percent return on cash investments. The exchange also asked all those interested in seeking consideration for its crypto and blockchain-based jobs to pay an application fee of USD 5 (20,000 Shillings). Up to 50 people had applied for jobs as marketing executives, cashiers, managers, and office assistants.
However, the company closed its offices abruptly on December 3, without any notice to its clients and potential staff after collecting an estimated USD 2.7 million (close 10 billion Shillings). UMRA records indicate that more than 1,000 customers from around the country were affected by the scam. They had deposited money ranging from one million to 800 million Shillings with the firm.
Tusuubira explains that much as the firm was issued with a Non-Deposit Taking Microfinance Institution license, it hoodwinked members of the public to enter into a partnership deed. The proprietors, through the partnership, mobilized deposits from their customers which they later swindled.
“At first, customers were profiteering from the scheme because they got initial payments. This was simply a trick to attract customers into the trap. However, after having a number of them in the trap, Dunamiscoins bosses disappeared”, Tusuubira observed.
Tusuubira has however warned members of the public to always be suspicious when dealing with such seemingly juicy deals.
“For now, Dunamiscoins Resources Ltd is banned from transacting any business because they closed business without informing the Authority. No one should deal with them,” Tusuubira warned and advised Ugandans to save their money with regulated financial institutions.
UMRA has also launched a sensitization campaign to create public awareness about the Dos and Don’ts of money lending.
Early this week, dozens of customers of Dunamiscoins Resource ltd staged a protest in Kampala to show their displeasure over what they described as failure by the government to help them recover the money that was swindled by Dunamiscoins.
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