Uganda Charts Path to Become a Regional Virtual Asset Leader

As digital innovation accelerates across Africa, Uganda stands at a pivotal crossroads in its journey to become a regional hub for virtual assets and blockchain technology. At the recent Blockchain Summit in Kampala, Bank of Uganda Governor Michael Atingi-Ego delivered a compelling keynote urging Uganda to transition from measured regulation to strategic growth in its virtual asset ecosystem.

Atingi-Ego clarified Uganda’s cautious approach to virtual assets, emphasizing that past restraint reflected prudence—not hesitation—in protecting consumers while building regulatory understanding. Recent risk assessments show that the vast majority of virtual asset activity in Uganda, over 84%, occurs on decentralized platforms, which presents significant oversight and consumer protection challenges. With increased use of stablecoins for cross-border payments—often outside the national currency and regulatory reach—Atingi-Ego highlighted that regulatory uncertainty can no longer continue, but blanket bans are both ineffective and counterproductive.

Citing Kenya’s recent legislative success in regulating virtual asset service providers, Atingi-Ego underscored three key lessons: comprehensive regulation is possible in Africa, a clear division of regulatory duties helps manage risk, and providing clarity attracts responsible innovation. He warned that Uganda risks falling behind unless it acts decisively, especially as Kenya has already moved forward with licensing and clarity for market participants.

The governor outlined six foundational pillars for Uganda’s own regulatory regime, including robust licensing standards, client asset protection, strict anti-money laundering rules, cybersecurity, market integrity, and strong data transparency. He advocated for coordinated oversight between relevant authorities and greater use of regulatory sandboxes to foster innovation while managing risks. Stakeholders across industry, government, and civil society were called to engage proactively, build capacity, and work collaboratively toward a shared vision.

With the digital financial landscape in the region rapidly evolving, Uganda now faces the strategic challenge of differentiating itself from early movers like Kenya. Atingi-Ego made it clear: Uganda’s future as a virtual asset leader hinges on swift, intelligent regulation, capacity building, and a complete ecosystem that leverages local strengths. The country’s ambitions will only be realized through urgent, quality-driven action and cross-sector collaboration.

This call to action signals a transformative moment for Uganda, as the decisions it makes today will shape the nation’s competitiveness and role in Africa’s digital economy for decades to come.