Is crypto legal in Uganda? Rules & regulation (2026)

Legal framework

Anti-Money Laundering Act 2013 (amended December 2020), VASPs register with Financial Intelligence Authority; Bank of Uganda Circular NPSD 306 (2022) banning crypto-to-mobile-money conversions; National Payment Systems Act 2020; Capital Markets Authority regulatory sandbox; no comprehensive dedicated virtual-assets law in force

Status by sub-area

• Stablecoins

  None

  No stablecoin-specific legal framework exists in Uganda. Private stablecoins are subject to the same payment-instrument prohibition as other crypto assets under the 2023 High Court ruling. The state-backed CBDC (digital Ugandan shilling backed by treasury bonds) is the only formally sanctioned digital-currency instrument.

• Exchanges / VASP

  Partial

  VASPs including crypto exchanges must register with the Financial Intelligence Authority under the AML Act (amended 2020) and comply with AML/CFT obligations, but there is no dedicated licensing regime governing capital requirements, conduct standards, or local-presence rules for exchanges.

  Still pending: Dedicated exchange licensing regime (capital requirements, conduct standards) not enacted

• Token Offerings

  Unclear

  No explicit ICO or STO framework exists. The Capital Markets Authority's 2018 options paper noted that security-like tokens could fall under existing CMA jurisdiction and that issuers could be required to register white papers, but no formal rules have been enacted and token sales occupy a legal grey area.

  Still pending: Formal ICO/STO framework not yet enacted; token sales remain in legal grey area

• Custody

  None

  Uganda has no dedicated crypto custody rules. VASPs providing safekeeping services must register with the FIA under AML obligations, but there are no segregation requirements, insurance mandates, proof-of-reserves obligations, or qualified-custodian standards specific to crypto assets.

  Still pending: Dedicated custody framework (segregation, insurance, proof-of-reserves) not enacted

• DeFi

  None

  Uganda has no regulatory framework addressing DeFi protocols, DAOs, or decentralised exchanges. The general payment-instrument prohibition and AML obligations exist in principle, but neither the Bank of Uganda, CMA, nor FIA has issued specific DeFi guidance or articulated an enforcement posture.

  Still pending: DeFi-specific regulatory framework and enforcement guidance not yet issued

• Tax

  Unclear

  Uganda's tax law does not explicitly address crypto assets. Capital gains on disposal of business assets are taxed as ordinary business income at 30%; no Uganda Revenue Authority guidance exists on staking rewards, airdrops, mining income, crypto-to-crypto transactions, or VAT treatment of crypto services.

  Still pending: URA crypto tax guidance (staking, airdrops, mining, VAT treatment) not yet issued

Key points: crypto & digital assets in Uganda

1. 01High Court payment-instrument ban

   In April 2023 Justice Ssekaana Musa ruled in Kayondo v Bank of Uganda (Misc Cause No. 109 of 2022) that cryptocurrencies are illegal as a general payment instrument under the National Payment Systems Act 2020, upholding Bank of Uganda Circular NPSD 306 which bars licensed entities from converting crypto to mobile money.

   kakuruadvocates.co.ug namaralaw.com

2. 02AML Act VASP registration (2020)

   The Anti-Money Laundering Act 2013 was amended in December 2020 to add VASPs, including crypto exchanges and custodians, as Accountable Persons, requiring registration with the Financial Intelligence Authority and full AML/CFT compliance.

   ulii.org bitcoinke.io

3. 03Bank of Uganda six-pillar framework (2025)

   In 2025 the Bank of Uganda Governor enumerated six foundational pillars for forthcoming crypto legislation: licensing and fit-and-proper standards, client asset protection, AML/CFT compliance, cybersecurity and operational resilience, market integrity and conduct, and transparency and data reporting.

   bitcoinke.io amlsquare.com

4. 04Parliamentary virtual-assets bill

   A private member's bill sponsored by MP Nathan Igeme Nabeta proposes to regulate virtual assets through an amendment to the Capital Markets Authority Act; the bill was prepared for its first reading as of late 2025 and had not been enacted as of mid-2026.

   mariblock.com

5. 05CBDC pilot and USD 5.5 B tokenisation push

   Uganda launched a CBDC pilot, a digital Ugandan shilling deployed on GSN's permissioned blockchain backed by treasury bonds, alongside a tokenisation initiative covering agricultural assets and renewable-energy projects operated jointly with the Capital Markets Authority.

   cointelegraph.com cryptonews.com

6. 06CMA 2018 regulatory options paper

   The Capital Markets Authority published a paper exploring regulatory options for crypto assets, noting that security-like tokens may fall under its existing statutory mandate and that ICO issuers could be required to register white papers with the CMA; no implementing rules have followed.

   cmauganda.co.ug

Sources

1. 1.ulii.org/akn/ug/act/2013/12/eng@2020-11-27
2. 2.bitcoinke.io/2020/12/fia-uganda-amends-aml-act/
3. 3.fia.go.ug/sites/default/files/downloads/FIA_Virtual_Assets_Working_Document_12t
4. 4.kakuruadvocates.co.ug/blogs/cryptocurrencies-illegal-uganda-high-court-judge-rules
5. 5.namaralaw.com/2023/05/03/crypto-currencies-under-the-current-national-payment-syste
6. 6.bitcoinke.io/2025/11/bank-of-uganda-foundational-pillars-for-crypto-regulation/
7. 7.amlsquare.com/news/bank-of-uganda-sets-out-6-pillars-for-crypto-regulation-a-step-t
8. 8.cmauganda.co.ug/wp-content/plugins/download-attachments/includes/download.php?id=8073
9. 9.mariblock.com/ugandas-parliament-working-on-a-bill-to-regulate-virtual-assets/
10. 10.cointelegraph.com/news/uganda-cbdc-tokenization-crypto-regulation-kenya
11. 11.cryptonews.com/news/uganda-unleashes-5-5b-tokenization-push-and-cbdc-pilot-as-kenya-