Cryptocurrency is not recognized as legal tender in Uganda, and a 2023 High Court ruling declared cryptocurrencies illegal as a payment instrument under the current National Payment System Act (2). The government does not license any organization to sell cryptocurrencies or facilitate crypto trades, meaning these organizations are not regulated by the government or any of its agencies (1). The Ministry of Finance issued a public statement clarifying that holders of crypto-currencies do not enjoy any consumer protection should they lose value or if organizations facilitating crypto services fail to deliver promised services (1).
In April 2022, the Bank of Uganda issued a circular barring all entities licensed under the National Payment Systems Act 2020 from liquidating crypto assets or converting cryptocurrencies to mobile money services (2). This directive was challenged in the case of Silver Kayondo v. Bank of Uganda, where Justice Ssekaana Musa ruled that the Bank of Uganda had the mandate to issue such directives and that cryptocurrencies are illegal under the current legal framework (2). The judge emphasized that the current regulatory framework was not designed with cryptocurrencies in mind, and the Bank of Uganda has a duty to warn the public about attendant risks before they fall prey to schemes disguised as digital economy where money-laundering or other illegal activities thrive (2).
"The government of Uganda does not recognize any crypto-currency as legal tender in Uganda. The government of Uganda has not licensed any organization in Uganda to sell crypto-currencies or to facilitate the trade in crypto-currencies and so these organizations are not regulated by the Government or any of its agencies."
Despite the legal restrictions, the 2020 amendment to the Anti-Money Laundering Act requires Virtual Asset Service Providers to register with the Financial Intelligence Authority for supervision and monitoring purposes (2). Most cryptocurrencies such as Bitcoin and Ethereum are not backed by assets or government guarantees, and their nature makes them attractive for criminal transactions such as money laundering and fraudulent ventures like Ponzi schemes (1). In October 2025, Uganda launched a Central Bank Digital Currency pilot backed by treasury bonds as part of a $5.5 billion national tokenization initiative (2).
Source:
https://archive.finance.go.ug/sites/default/files/press/statement%20on%20crypto%20currency.pdf
https://kakuruadvocates.co.ug/blogs/cryptocurrencies-illegal-uganda-high-court-judge-rules
Last updated: 19-10-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.
