Uganda Compliance Report

Generated 2026-09-22

Comprehensive Framework

Regulatory Overview

Regulatory Status: Dedicated crypto/VA legislation, licensing regime, active enforcement
Key Regulator(s): Uganda's Financial Intelligence Authority, Bank of Uganda Warns Supervised Entities Against Dealing, Bank of Uganda's, Bank of Uganda Act, Capital Markets Authority of Uganda, United Nations Security Council
Primary Legislation: The operative Bank of Uganda measure is the circular of 29 April 2022, signed by, Act 15 of 2020, Cap. 59, Act 12 of 2013, Cap. 118, and subsequent amendments, available via Uganda Legal Information Institute: https://www.ulii.org/ug/legislation/act/2013/6, Act 15 of 2020, Act 2 of 2004, Chapter 57, Act 12 of 2013, Chapter 118, Uganda has no Bank of Uganda Act of 2000; the central bank statute is the Bank o, No Ugandan statute prohibits an individual from holding or trading virtual asset, The Bank of Uganda's circular of 29 April 2022 directs entities licensed under t, Act, Statutory Instrument, or Gazette notice, No guidance on applying the Anti-Money Laundering Act (Cap. 216) or the Anti-Ter, The UCC board inauguration remarks reference media regulation challenges (misinf, Absence of a dedicated Virtual Assets Act or regulatory sandbox leaves VASPs wit, e.g., under existing AML Act powers
Travel Rule: Adopted — Threshold: Implemented
Tax Reporting: Uganda has no crypto-asset tax provision, and a resident individual's gain on disposing of crypto held outside a business is not added to other income: the Income Tax Act, Chapter 338, exempts any capital gain that is not included in business income, other than a gain derived from the sale of shares in a private limited company, and Uganda levies no separate capital gains tax.. A resident individual's annual chargeable income up to UGX 2,820,000 bears no Ugandan income tax under Part I of the Third Schedule to the Income Tax Act, Chapter 338, and that threshold applies to crypto-derived income through the general charge, there being no crypto-specific band.. Annual chargeable income between UGX 2,820,001 and UGX 4,020,000 is taxed at 10% of the amount above UGX 2,820,000 for a resident individual in Uganda, under Part I of the Third Schedule to the Income Tax Act, Chapter 338.. Uganda's 20% band for a resident individual runs from UGX 4,020,001 to UGX 4,920,000 and charges UGX 120,000 plus 20% of the amount above UGX 4,020,000; the band stops at UGX 4,920,000 and does not extend to UGX 6,240,000.. Uganda's 30% band for a resident individual runs from UGX 4,920,001 to UGX 120,000,000 and charges UGX 300,000 plus 30% of the amount above UGX 4,920,000; neither UGX 6,240,001 nor a base charge of UGX 564,000 belongs to the Ugandan scale in the Third Schedule to the Income Tax Act, Chapter 338.

Key Facts

aml Uganda's Anti-Money Laundering Act, 2013 (Act 12 of 2013), consolidated as Chapter 118, imposes its obligations on accountable persons, defined as any person listed in its Second Schedule, and section 18 establishes the Financial Intelligence Authority; the Act reaches virtual asset service providers by express designation rather than by interpretation, because the Anti-Money Laundering (Amendment of Second Schedule) Instrument, 2020 (Statutory Instrument 136 of 2020) added virtual asset service providers to that Schedule with effect from 27 November 2020, and they stand as paragraph 16 of Schedule 2 in the Financial Intelligence Authority's signed registration guidelines of January 2024, which require every accountable person to register with the Authority. Uganda's Anti-Money Laundering Regulations, 2015 are Statutory Instrument 75 of 2015, made on 24 December 2015 under the Anti-Money Laundering Act, 2013, and they do carry the implementing detail the claim describes: Part V, regulations 13 to 27, sets out customer due diligence and verification for natural persons, foreign nationals, entities, partnerships and trustees; regulation 42 requires an accountable person to keep transaction and due-diligence records for a minimum of five years from completion of the relevant business or transaction; and regulation 39 governs suspicious transaction reporting to the Financial Intelligence Authority, with regulation 39(3) additionally requiring reports of cash transactions above one thousand currency points. Uganda has no Financial Intelligence Authority Act, of 2013 or of any year; the Uganda Legal Information Institute's consolidated index of legislation carries no such title. The Financial Intelligence Authority is established by section 18 of the Anti-Money Laundering Act, 2013 (Act 12 of 2013), Chapter 118, which reads 'There is established a Financial Intelligence Authority', and the Authority's functions of receiving, analysing and disseminating financial intelligence flow from that Act rather than from a separate statute. The Bank of Uganda Act is Chapter 54 under Uganda's current revision, Chapter 51 having been its number only in the Revised Edition of 2000; the Act originates as Statute 5 of 1993, commenced 14 May 1993, and its text contains no provision on virtual assets, cryptocurrency, digital currency or blockchain. The Bank of Uganda's operative virtual-asset instrument is not the Bank of Uganda Act but its circular to National Payment Systems licensees of 29 April 2022, issued under sections 13(1)(b) and (f) of the National Payment Systems Act, 2020, which states that the Bank has licensed no institution to sell or facilitate trade in cryptocurrencies and directs licensees to desist from facilitating cryptocurrency transactions. Individual Customers: Obtain and verify the customer's full name, permanent address, date of birth, national identification number (e.g., National ID, passport), and other relevant identification documents. Legal Entities (Companies, etc.): Obtain and verify the company's registered name, legal form, proof of incorporation, physical address, business registration number, tax identification number, and details of directors, beneficial owners, and authorized signatories. Beneficial Ownership: Identify and verify the identity of the beneficial owner(s) – the natural person(s) who ultimately own or control the customer, or the natural person(s) on whose behalf a transaction is being conducted. Purpose and Intended Nature of Business Relationship: Understand the purpose and intended nature of the business relationship or the transaction.
custody Virtual assets are not legal tender in Uganda: Bank of Uganda Governor Michael Atingi-Ego confirmed at the Blockchain Summit in Kampala on 25 November 2025 that the central bank 'stated publicly that virtual assets are not legal tender and that participation is at one's own risk'. The Bank of Uganda neither licenses nor supervises virtual assets or virtual asset service providers: its circular of 29 April 2022 states that it 'has not licensed any institution to sell cryptocurrencies or to facilitate the trade in crypto-currencies', and ESAAMLG's 7th Follow-Up Report of September 2021 records that Uganda has no designated supervisory authority for VASPs. Ugandan VASPs are nonetheless accountable persons at paragraph 16 of Schedule 2 to the Anti-Money Laundering Act, 2013 and must register with the Financial Intelligence Authority. The Bank of Uganda's circular of 29 April 2022, signed by Andrew Kawere, Director of National Payments System, and invoking sections 13(1)(b) and (f) of the National Payment Systems Act, 2020, directs entities licensed under that Act to desist from facilitating cryptocurrency transactions; it is addressed to payment system licensees rather than to banks generally, and it imposes no rule on holding virtual assets on behalf of clients. Bank of Uganda Official Website: While specific circulars on crypto may be older and harder to link directly, the BoU's general stance is frequently reiterated. You can monitor their publications here: https://www.bou.or.ug/bou/ Statement by Bank of Uganda on Virtual Currencies (from various news sources, citing BoU): Many news articles from 2021-2023 refer to BoU statements warning the public and prohibiting regulated entities. For instance, the BoU has previously issued warnings to payment service providers (PSPs) against facilitating cryptocurrency transactions. Uganda operates no licence, authorisation or registration category for virtual-asset or digital-asset custody; ESAAMLG's 7th Follow-Up Report of September 2021 records that 'there is no registration or licensing requirements for VASPs before they start operating their business in Uganda', and the position was unchanged when the Governor of the Bank of Uganda called for a licensing framework on 25 November 2025. This is because regulated financial institutions are currently prohibited from engaging in these activities. Any entity attempting to provide such services would operate in an unregulated space, with potential legal and operational risks. Licences issued under Uganda's National Payment Systems Act, 2020 (Act 15 of 2020, Chapter 59) and the Financial Institutions Act, 2004 (Act 2 of 2004, Chapter 57) confer no authority over virtual-asset custody: neither statute mentions virtual assets, cryptocurrency or digital assets, and the Bank of Uganda's circular of 29 April 2022 directs National Payment Systems Act licensees away from cryptocurrency altogether.
enforcement Entity Targeted: All Regulated Financial Institutions (e.g., Commercial Banks, Payment Service Providers, Microfinance Deposit-taking Institutions). Violation Type: N/A (this was a pre-emptive prohibition, not an action against a prior violation by a crypto firm). Penalty Amount: N/A (the circular itself did not impose a fine on a crypto entity, but implied penalties for regulated entities that failed to comply with the directive). Outcome: The BoU issued a circular directing all supervised financial institutions to cease facilitating transactions related to virtual currencies. This effectively cut off cryptocurrency exchanges and related businesses from accessing formal banking services in Uganda. The BoU cited concerns over consumer protection, money laundering, terrorism financing, and the lack of specific regulations. This directive has made it extremely challenging, if not impossible, for crypto businesses to operate formally within the Ugandan financial system. Entity Targeted: The general public and unregulated virtual asset service providers (implicitly). Violation Type: N/A (warnings about risks, not specific violations). Penalty Amount: N/A. Outcome: These warnings emphasize that cryptocurrencies are not legal tender, are not regulated by the BoU, and carry high risks of fraud, money laundering, and loss of funds. The FIA has also highlighted AML/CFT risks. The lack of a specific licensing and regulatory framework for VASPs means that any entity operating with virtual assets does so without official recognition or oversight, increasing their operational risk and exposure to potential future actions should a framework be introduced. This environment largely prevents formal enforcement actions against VASPs for regulatory non-compliance because there aren't specific VASP regulations to violate yet, other than general financial laws (e.g., fraud). Outcome: These warnings emphasize that cryptocurrencies are not legal tender, are not regulated by the BoU, and carry high risks of fraud, money laundering, and loss of funds. The FIA has also highlighted AML/CFT risks. The lack of a specific licensing and regulatory framework for VASPs means that any entity operating with virtual assets does so without official recognition or oversight, increasing their operational risk and exposure to potential future actions should a framework be introduced. This environment largely prevents formal enforcement actions against VASPs for regulatory non-compliance because there aren't specific VASP regulations to violate yet, other than general financial laws (e.g., fraud).
licensing Date: June 11, 2021 Bank of Uganda Circular (N. 3 of 2021): While direct link to the circular might change, news articles widely reported on it and often link to scans of the original. Bank of Uganda Warns Supervised Entities Against Dealing in Cryptocurrencies - Techweez (reporting on the circular) Uganda's Central Bank Orders Financial Institutions to Cease All Crypto Transactions - Bitcoin.com News Regulator Name: Bank of Uganda (BoU) Date: Ongoing, but prominent warnings in late 2020, 2021, and subsequent reiterations. Source URL (example of a reiteration): Bank of Uganda reiterates its tough stance on cryptocurrency use - Africanews (2022)
stablecoin Uganda has no stablecoin instrument of any kind: the National Payment Systems Act 2020 (Act 15 of 2020, Cap. 59) carries no occurrence of stablecoin, virtual asset, virtual currency or cryptocurrency, and its definition of electronic money reaches only monetary value issued by a licensed issuer upon receipt of an equivalent amount of funds, so no Ugandan law classifies a stablecoin as electronic money, a payment token or a security. Classification (Hypothetical): If stablecoins were ever to be formally recognized and regulated, they would likely fall under the broad definitions within the National Payment Systems Act, 2020 and the National Payment Systems Regulations, 2021. These define "payment instrument," "payment system," and "e-money," which could potentially encompass stablecoins depending on their specific characteristics (e.g., if they are fiat-backed and aim to maintain a stable value for transactional purposes). However, this remains hypothetical given the current prohibitive stance. Uganda imposes no reserve, backing or reserve-asset duty on stablecoin issuers; the only comparable Ugandan obligation is the funding rule for licensed electronic money issuers in the National Payment Systems Act 2020, whose section 47 requires electronic money to be issued only after an equivalent amount of cash is deposited in a trust account or special account, and that duty reaches no stablecoin issuer. Sections 47, 49 and 51 of the National Payment Systems Act 2020 require a licensed electronic money issuer to issue electronic money only after an equivalent amount of cash is deposited, to apply to the Bank of Uganda for a trust account, and, where the issuer is a financial institution or microfinance deposit-taking institution, to open and maintain a special account with the central bank's approval; these duties attach only to holders of a Bank of Uganda electronic money licence and reach no stablecoin issuer. Uganda operates no licensing regime for stablecoin issuers: section 6 of the National Payment Systems Act 2020 bars a person from offering a payment service, operating a payment system or issuing a payment instrument without a Bank of Uganda licence, and no Ugandan statute or statutory instrument creates a virtual-asset, VASP or stablecoin licence. BoU Prohibition: The Bank of Uganda's stance, articulated in circulars, effectively prohibits regulated financial institutions and licensed Payment Service Providers (PSPs) from obtaining licenses to issue or facilitate the use of stablecoins. Any entity issuing stablecoins in Uganda would be operating outside the formal financial regulatory system. Ugandan law confers no redemption right on a stablecoin holder; the only statutory redemption anchor is the definition of electronic money in the National Payment Systems Act 2020, which requires the instrument to be prepaid or redeemable in cash and binds only licensed electronic money issuers, so a stablecoin holder's position rests entirely on the issuer's contract. Algorithmic Stablecoin Rules:
status Uganda has not enacted specific legislation regulating cryptocurrencies or virtual assets as of the current regulatory framework visible in official sources Home - Uganda Revenue Authority The Uganda Revenue Authority (URA) lists the Financial Intelligence Authority under its Legal & Policy division but provides no published guidance on virtual asset taxation or licensing Home - Uganda Revenue Authority The Uganda Communications Commission (UCC) regulates communications infrastructure but its mandate does not explicitly extend to digital asset regulation per the board inauguration announcement Uganda Communications Commission (UCC) Board of Directors Sw... No official source among the provided documents confirms a dedicated crypto licensing regime, capital requirements, or AML/KYC framework specific to virtual asset service providers Practical reality: businesses operate in a regulatory vacuum with no clear licensing pathway, tax treatment, or compliance framework defined by Ugandan authorities Uganda Revenue Authority (URA) is the domestic tax administration body; its website references the Financial Intelligence Authority (FIA) under Legal & Policy but does not publish virtual asset regulations Home - Uganda Revenue Authority Uganda Communications Commission (UCC) is the communications sector regulator; a new Board of Directors was sworn in on 2 April 2025 chaired by Dr. Charity Basaza Mulenga Uganda Communications Commission (UCC) Board of Directors Sw... No primary legislation (Act, Statutory Instrument, or Gazette notice) specific to cryptocurrencies, digital assets, or virtual asset service providers is cited in the provided official sources
tax Uganda has no crypto-asset tax provision, and a resident individual's gain on disposing of crypto held outside a business is not added to other income: the Income Tax Act, Chapter 338, exempts any capital gain that is not included in business income, other than a gain derived from the sale of shares in a private limited company, and Uganda levies no separate capital gains tax. A resident individual's annual chargeable income up to UGX 2,820,000 bears no Ugandan income tax under Part I of the Third Schedule to the Income Tax Act, Chapter 338, and that threshold applies to crypto-derived income through the general charge, there being no crypto-specific band. Annual chargeable income between UGX 2,820,001 and UGX 4,020,000 is taxed at 10% of the amount above UGX 2,820,000 for a resident individual in Uganda, under Part I of the Third Schedule to the Income Tax Act, Chapter 338. Uganda's 20% band for a resident individual runs from UGX 4,020,001 to UGX 4,920,000 and charges UGX 120,000 plus 20% of the amount above UGX 4,020,000; the band stops at UGX 4,920,000 and does not extend to UGX 6,240,000. Uganda's 30% band for a resident individual runs from UGX 4,920,001 to UGX 120,000,000 and charges UGX 300,000 plus 30% of the amount above UGX 4,920,000; neither UGX 6,240,001 nor a base charge of UGX 564,000 belongs to the Ugandan scale in the Third Schedule to the Income Tax Act, Chapter 338. A resident individual in Uganda whose annual chargeable income exceeds UGX 120,000,000 pays UGX 34,824,000 plus 40% of the amount above UGX 120,000,000, the 40% arising from the additional 10% charge that sits on top of the 30% rate; the figure UGX 35,472,000 matches neither the resident computation nor the non-resident figure of UGX 35,106,000. Non-resident individuals in Uganda pay graduated rates, not flat ones: 10% on annual chargeable income up to UGX 4,020,000, UGX 402,000 plus 20% from UGX 4,020,001 to UGX 4,920,000, UGX 582,000 plus 30% from UGX 4,920,001 to UGX 120,000,000, and UGX 35,106,000 plus 40% above UGX 120,000,000, the difference from residents being the absence of an exempt threshold. A Ugandan company's gain on disposing of crypto held as a business asset is included in business income and taxed at the 30% corporate rate, because the Income Tax Act, Chapter 338, imposes no separate capital gains tax and gains on disposal of non-depreciable business assets fall into business income; no crypto-specific provision produces that result.
travel rule Uganda has not enacted any specific cryptocurrency or digital asset legislation, and no dedicated travel-rule framework exists as of 2025–2026. Uganda travel advice - GOV.UK The Bank of Uganda has not licensed any cryptocurrency exchange, and there is no registered Virtual Asset Service Provider (VASP) under any regulatory regime in the country. Uganda - Traveler view | Travelers' Health | CDC No licensing regime for crypto-related activities has been established, meaning no entity can legally obtain a crypto license in Uganda. Uganda Travel Advice & Safety | Smartraveller The primary financial regulator in Uganda is the Bank of Uganda, which has not issued any regulations or guidelines specifically addressing cryptocurrency or digital assets. Uganda travel advice - GOV.UK The Financial Intelligence Authority (FIA) is the designated AML/CFT authority in Uganda, but no published directives or regulations from the FIA cover virtual assets or travel-rule implementation. Uganda - Traveler view | Travelers' Health | CDC Uganda's primary financial legislation includes the Financial Institutions Act 2004 (as amended), the Anti-Money Laundering Act 2013 (as amended), and the Prevention of Terrorism Act 2002, none of which mention cryptocurrencies or define virtual assets. Uganda Travel Advisory | Travel.State.gov Uganda is a member of the Eastern and Southern Africa Anti-Money Laundering Group (ESAAMLG), a FATF-style regional body, and has undergone mutual evaluations that have not addressed crypto-asset regulation. Uganda Travel Advice & Safety | Smartraveller The Capital Markets Authority (CMA) has not extended its regulatory mandate to cover digital asset exchanges, initial coin offerings, or any crypto-related products. Uganda travel advice - GOV.UK

Sources

This report is AI-generated from publicly available regulatory sources. Last updated: 2026-09-09. View full profile