Africa-Press – Uganda. The Governor of the Bank of Uganda Michael Atingi-Ego has urged the country to adopt a rapid but carefully calibrated regulatory framework for virtual assets, warning that without strategic action, Uganda risks falling behind regional neighbors such as Kenya.
The Governor delivered his remarks during the Kampala Blockchain Summit 2025, held at Four Points by Sheraton, emphasizing that the country stands at a “pivotal moment” in shaping the future of digital finance.
In his keynote address, Atingi-Ego stressed that the question for Uganda is no longer whether blockchain and cryptocurrency technologies are important, but whether the country will be an architect of their adoption or merely a user of systems designed elsewhere.
“We meet at a moment when the decisions we make today will shape the structure, the safety, and the competitiveness of our economy for decades to come,” he said, urging stakeholders to act with both intelligence and strategic focus.
The Governor acknowledged that Uganda’s cautious approach toward cryptocurrencies and blockchain had sometimes been misunderstood as resistance. He clarified that regulators have been acting to protect citizens while carefully studying global best practices.
“Our stance has not been one of obstruction, but of protection. What is conservative about protecting millions of citizens from products they may not fully understand?” he asked. He added that Uganda must accelerate its digital finance capabilities to avoid remaining in what he described as the “financial stone age.”
Highlighting current trends, Atingi-Ego noted that 84.5 percent of virtual asset activity in Uganda occurs on decentralized platforms, a figure well above the Sub-Saharan African average. This, he warned, creates significant supervisory blind spots and leaves consumers exposed to fraud. Stablecoins, he observed, are widely used for remittances but carry serious macroeconomic risks.
Turning to regional developments, the Governor pointed to Kenya’s recent regulatory advancements as a model for Uganda. He noted that Kenya has begun licensing its first virtual asset service providers, while Uganda has yet to establish a formal framework.
However, he framed Kenya’s progress as an opportunity rather than a setback, suggesting that Uganda can learn from its neighbor’s experience to implement a framework that is intelligent, strategic, and world-class.
“Being second to legislate does not mean accepting second-tier status,” he said.
Atingi-Ego outlined the essential pillars that should underpin Uganda’s virtual asset legislation, including licensing standards, client asset protection, anti-money laundering compliance, cybersecurity, market integrity, and transparency.
He emphasized that these are not theoretical concepts but practical requirements for jurisdictions seeking to safely integrate virtual assets into their financial systems.
He also encouraged innovators to engage with existing regulatory sandboxes under the Bank of Uganda and the Capital Markets Authority, describing them as critical spaces for learning before formal legislation is introduced.
The Governor issued a direct challenge to all stakeholders. To the industry, he called for constructive engagement, the building of trustworthy businesses, and the sharing of expertise.
Regulators were urged to build capacity, avoid reflexive rule-making, and coordinate tightly, ensuring that regulation is proportionate, rigorous, and evidence-based.
Consumers, he reminded, must exercise caution, avoid schemes promising guaranteed returns, and invest only what they can afford to lose.
Returning to the summit’s theme of positioning
Uganda as a regional hub for virtual assets, Atingi-Ego asked a pointed question: how can Uganda attract firms to Kampala when Nairobi is already ahead?
He argued that Uganda must differentiate itself through high-quality legislation, world-class supervisory capacity, and a deep ecosystem of talent and infrastructure.
“Uganda does not need to follow. Uganda is ready to lead—but only if we move with urgency and quality simultaneously,” he said.
Atingi-Ego concluded by emphasizing that the choices made today will shape Uganda’s digital economy for generations.
“Let us build a digital financial future worthy of Uganda’s creativity, talent, and ambition,” he said, calling on all stakeholders to act decisively.
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