Engage in digital currencies at your own risk – BoU warns public

Bank of Uganda (BoU) wishes to notify the general public that the entity “ONE COIN DIGITAL MONEY” is not licensed by the BoU under the Financial Institutions Act

What you need to know:

  • OneCoin is promising high returns for people who sign up in Uganda on a first-come-first-serve basis. OneCoin, however, says it is different from other digital currency operators because it maintains a Know-Your-Customer (KYC) rules in order to protect its customers. OneCoin has offices in the UAE, Singapore, and Bulgaria.
  • OneCoin on its website describes itself as the biggest reserve currencies in the world. Crypto-currency has become more popular around the world because they are considered to be immune to government interference and

Kampala: The Bank of Uganda (BoU) has today warned the public that has an interest or participating in the emergence of several digital currencies, to do so at their own risk. This comes after a software company OneCoin that owns a digital crypto-currency opened an office at the Mukwano Arcade in Kampala, promising good returns to Ugandans that want to participate. BoU says that such digital currencies don’t receive investor protection or regulatory oversight.
“Bank of Uganda warns the general public that whoever wishes to invest their hard earned savings in Cryptocurrency forms such as One-coin, Bitcoin, Ripple, Peercoin, Namecoin, Dogecoin, Litecoin, Bytecoin, Primecoin, Blackcoin or any other forms of Digital Currency is taking a risk in the financial space where there is neither investor protection nor regulatory purview. The public is hereby warned that whoever deals with “ONE COIN DIGITAL MONEY” does so at his or her own risk,” the warning from BoU reads.

OneCoin on its website describes itself as the biggest reserve currencies in the world. Crypto-currency has become more popular around the world because they are considered to be immune to government interference and manipulation. This digital money can be transferred and also be redeemed into normal money in some instances. Digital currencies continue to pose a regulatory headache for central banks around the world. That explains why BoU has distanced itself from OneCoin.

“Bank of Uganda (BoU) wishes to notify the general public that the entity “ONE COIN DIGITAL MONEY” is not licensed by the BoU under the Financial Institutions Act, 2004 and is, therefore, conducting business outside the regulatory purview of the BoU,” the notice further reads.

OneCoin is promising high returns for people who sign up in Uganda on a first-come-first-serve basis. OneCoin, however, says it is different from other digital currency operators because it maintains a Know-Your-Customer (KYC) rules in order to protect its customers. OneCoin has offices in the UAE, Singapore, and Bulgaria.

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