{"id":20212,"date":"2023-04-25T12:08:16","date_gmt":"2023-04-25T12:08:16","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/ugandan-high-court-rules-to-uphold-central-banks-crypto-prohibition-africa-bitcoin-news\/"},"modified":"2023-04-25T12:08:16","modified_gmt":"2023-04-25T12:08:16","slug":"ugandan-high-court-rules-to-uphold-central-banks-crypto-prohibition-africa-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/ugandan-high-court-rules-to-uphold-central-banks-crypto-prohibition-africa-bitcoin-news\/","title":{"rendered":"Ugandan High Court Rules to Uphold Central Bank’s Crypto Prohibition \u2013 Africa Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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A Judge of a High Court in Uganda recently dismissed an application which sought to quash a Bank of Uganda directive that barred licensed entities and individuals from facilitating crypto transactions. In his ruling, Justice Musa Ssekaana insisted that the central bank\u2019s crypto prohibition does not amount to an infringement on property rights.<\/strong><\/p>\n

Cryptocurrency an \u2018Undefined\u2019 Payment System in Uganda<\/h2>\n

The High Court in Uganda recently dismissed an application that sought to upend a central bank directive that bars cryptocurrency transactions. In his ruling, the court\u2019s Justice Musa Ssekaana, insisted that the Bank of Uganda (BOU)\u2019s April 2022 directive does not infringe on individual property rights. Instead, the directive is an attempt by the central bank not to legalize the \u201cundefined system as a payment instrument in Uganda.\u201d<\/p>\n

As previously reported by Bitcoin.com News in May 2022, the BOU warned parties disregarding its directive that it will not hesitate to invoke \u201cits powers under Section 13(l) (b) & (f) of the NPS Act, 2020 for any licensees that will be found in breach of the above directive.\u201d<\/p>\n

Immediately after the directive was issued, Silver Kayondo, a Ugandan crypto trader, sought redress via the High Court. In addition to having the court declare cryptos legitimate digital assets, Kayondo also wanted the court to set aside the central bank\u2019s directive.<\/p>\n

Bank of Uganda Crypto Directive Properly Issued<\/h2>\n

However, in ruling against Kayondo\u2019s application, Justice Ssekaana said the BOU acted appropriately when it issued the directive.<\/span><\/p>\n

\u201cThe applicant cannot make a claim for legitimate expectation merely because the public statement did not outlaw the same. The statement did not promise to the applicant or other stakeholders that cryptocurrencies would be allowed in Uganda or would never be regulated. Legitimate expectation relates to a promise in relation to an existing situation which will continue, or to a future benefit, advantage or course of action which the authority will follow,\u201d Justice Ssekaana asserted. <\/span><\/p>\n

The judge also added that the BOU directive clearly states Uganda\u2019s position with respect to cryptocurrencies and that \u201cthe context cannot be distorted to infer any benefit or promise of legality.\u201d Ssekaana also ordered each party to bear the costs of bringing the matter before the courts.<\/span><\/p>\n

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What are your thoughts on this story? Let us know what you think in the comments section below. <\/strong><\/em><\/p>\n

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\nTerence Zimwara <\/h6>\n

\nTerence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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