BoU governor, industry players map Uganda’s virtual asset future
According to the governor, while Uganda's path to Blockchain regulation looks clearer, there is a need for a regulatory framework to support the growth of virtual assets while protecting consumers and ensuring financial stability
Bank of Uganda Governor Dr Michael Atingi-Ego gives his Keynote address during the Summit. (Courtesy)
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The Bank of Uganda Governor, Dr Michael Atingi-Ego, is calling for a rapid but carefully calibrated regulatory framework for virtual assets, warning Uganda risks falling behind its neighbour, Kenya, if decisions are not strategically made.
According to the governor, while Uganda's path to Blockchain regulation looks clearer, there is a need for a regulatory framework to support the growth of virtual assets while protecting consumers and ensuring financial stability
He was delivering his keynote address to industry stakeholders and innovators during the Kampala Blockchain Summit 2025 held at Four Points by Sheraton on Tuesday under the theme: "From Regulation to Growth: Uganda as a Regional Hub for Virtual Assets.
“The decisions we make today can offer safety, competitiveness and stability to our economy. However, the reverse could be true. I want to challenge you not to settle for “second-tier” status, but to aim for leadership: through high-quality legislation, world-class supervisory capacity, infrastructure investment, and talent development,” the governor emphasised.”
Atingi-Ego clarified that virtual assets are currently not a legal tender, and participation in the market carries inherent risk. He stated that Patience is “prudence, not hesitation.”
“Our stance has not been one of destruction but protection. There is nothing wrong with protecting millions of Ugandans from products they may not understand.”
To date, 85% of virtual asset activity in Uganda happens on decentralised platforms, well above the Sub-African average. This could create supervisory blind spots and expose consumers to fraud.
Pillars to adhere to
As part of his vision, the Governor proposed a robust regulatory architecture built on six foundational pillars: licensing and fit-and-proper standards; client-asset protection; AML/CFT compliance (including compliance with the Financial Action Task Force Travel Rule); cybersecurity and operational resilience; market integrity and conduct; and transparency and data reporting.
He urged stakeholders to adopt a collaborative and phased approach, encouraging them to build supervisory capacity, industry players to engage transparently, and consumers to invest cautiously, avoiding promises of guaranteed returns.
Reginald Tumusiime, the President of Blockchain Association of Uganda, is optimistic that Uganda is building on solid ground. He cited developments such as the Uganda Law Reform Commission, which received a cabinet mandate to translate policy into legislation.
Besides regulation, the Summit featured a full programme of panels and presentations. Speakers included local and international experts such as Sylvia Mulinge, CEO of MTN Uganda; representatives from banks, mobile-money providers, and fintech startups; as well as global analysts from the CFA Institute.
Mulinge highlighted that, whereas over 70% of Uganda’s population is the youth, which offers a huge potential for innovation and technology regulation remains paramount.
Meanwhile, a regulators’ roundtable brought together major oversight bodies, including BoU, the Capital Markets Authority, the Financial Intelligence Authority, and the Uganda Revenue Authority, underscoring a coordinated, multi-agency response to the evolving virtual-asset landscape.
Blockchain and virtual-asset technologies represent more than speculative crypto trading: they could enable financial inclusion, improve remittance channels, facilitate asset tokenisation, and support fintech innovation across sectors ranging from agriculture to logistics.
As Uganda moves toward formalising the regulatory framework laid out during the Summit, industry stakeholders and observers are watching closely. The hope is that with clarity, coordination, and capacity building, Uganda can emerge not only as a user of global blockchain systems but as a regional hub shaping them.
Across the region
Effective November 4, 2025, the Virtual Asset Service Providers Act, 2025 was deployed in Kenya. It establishes a comprehensive regulatory framework for licensing and regulating virtual asset service providers in Kenya, marking a significant shift in the country's approach to digital assets.