Uganda is in early stages of regulating cryptocurrencies, buy has already announced its warning for the OneCoin. Warning users of its suspicious intentions and unregulated nature, it released a public announcement via the central bank to citizens looking to invest in Bitcoin and other such cryptocoins.
The public is hereby warned that whoever deals with “ONE COIN DIGITAL MONEY” does so at his or her own risk.
The OneCoin has also faced critics’ in the UK as the financial conduct authority also persecuted suspect team members. While the OneCoin is significantly different from the likes of Bitcoin, the timing of warnings comes extremely close to talks of Bitcoin regulations which may be put in this year. This would make Uganda one of the only countries after Nigeria to begin the regulation of these currencies.
Altcoins are no inherently bad assets as many altcoins such as Ethereum have legitimate teams developing the infrastructure and are currently worth millions.
To conclude the warning regarding the cryptocurrencies is thought to impact possible regulations which are to be set by the authorities in Uganda as talks on Bitcoin begin later this year. Users are being advised to stay away from the cryptocurrencies as investigations suggest the team behind the cryptocurrencies is possibly running a pyramid scheme. Such schemes have been discussed previously such as the MMM scheme, and risks significantly outweigh financial profit putting your assets on the line. One easy method of identifying a legitimate cryptocoins is to explore the coins origins and team. Many are often create by single developers looking to make a quick profit from unsuspecting users.