Uganda cautions public against crypto-currency as legal tender
INTERNATIONAL - Uganda's ministry of finance on Monday said it does not recognize any crypto-currency or companies related to such as a legal tender.
The ministry said in a statement released to the public that it has not licensed any organization in the country to sell crypto-currencies or to facilitate the trade-in of crypto-currencies.
The statement further noted that any organizations trading crypto-currencies are not regulated by government or any of its agencies. It warned that anyone dealing with crypto-currencies in the country are at risk of losing it.
"Most crypto-currencies are not backed by assets or government guarantees, therefore holders of these crypto-currencies are fully exposed to the risk of loss or diminishing value as the issuers are not obliged to exchange them for legal currency or other value," the statement said.
"The public is advised to appraise themselves of the risks associated with cyber-currencies, and exercise caution before they make transactions involving such products," the statement added.