Rajarshi Mitra
Independent Analyst
- Reportedly, legislators are advancing a proposal to criminalize Ponzi schemes that include coverage for the role of digital currencies.
- A Ugandan politician has suggested people to not invest in cryptocurrencies due to the lack of regulation.
Ugandan legislators are exploring the connection between cryptocurrencies and pyramid scheme frauds that have been spreading in the country over the last few months. According to a report by PML Daily, a local newspaper, legislators are pushing a proposal to criminalize Ponzi schemes that include coverage for the role of digital currencies.
David Bahati, State Minister of Finance, told the members of parliament that the government has instituted a task force to explore cryptocurrencies and their potential applications in Uganda. Addressing the Ponzi schemes in Uganda, he spoke about a government initiative that aims to educate citizens on recognizing financial scams.
We are also discussing with the Internal Affairs Ministry to ban such schemes. The challenge is that operators of such schemes register as financial institutions, but when they get on the ground, their operations are different.
Bahati also suggested people to not invest in cryptocurrencies due to the lack of regulation. The politician added:
We have continued to advise the public to desist from investing in cryptocurrencies since they are yet to be supervised and regulated in Uganda. We have, therefore, strongly encouraged the members of the public to do their business transactions with only licensed financial institutions.
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