Is Bitbank Legal in Uganda? Is Bitbank Safe?
Choosing a trustworthy cryptocurrency exchange is crucial as it directly impacts the safety and security of your digital assets. The high risk of scams in this area necessitates extreme caution from users.
Our analysts have noticed a growing interest in Bitbank services among users in the Uganda. However, questions remain regarding its safety and legal status within the Uganda. Traders Union experts have addressed this concern by crafting a detailed review that explores both the pros and cons of using Bitbank.
So, let us tell you if Bitbank is allowed in the Uganda and if it's safe to use for trading.
Is Bitbank legal in Uganda? Does it have a license?
Bitbank is a regulated exchange that provides services in most countries worldwide, except for those under international sanctions, such as North Korea, Iran, Syria, Cuba, and regions like Crimea, Donetsk, and Luhansk. Restrictions may also apply based on requests from local regulators. We compared Bitbank's level of regulation with the top two global competitors and the top two competitors available in your country. Exchanges with Tier-1 regulation are generally considered the safest. However, Bitbank's safety level is also influenced by other factors outlined below.
| Bitbank | Bybit | MEXC | |
|---|---|---|---|
Government-regulated |
Yes |
Yes |
No |
Tier-1 regulation |
Yes |
Yes |
No |
U.S regulation |
No |
No |
No |
FCA U.K |
No |
No |
No |
AUSTRAC in Australia |
No |
No |
No |
DFSA in UAE |
No |
No |
No |
AMF in France |
No |
No |
No |
Spain |
No |
No |
No |
Germany |
No |
No |
No |
Singapore |
No |
No |
No |
MFSA in Malta |
No |
No |
No |
Seychelles |
No |
Yes |
No |
Other countries |
Japan |
Austria’s Financial Market Authority (FMA), Georgia, Kazakhstan |
|
Open an account |
|
|
Other Bitbank Security Factors to Consider
| Bitbank | Bybit | MEXC | |
|---|---|---|---|
2FA |
Yes |
Yes |
Yes |
Verification (KYC) |
Yes |
Yes |
Yes |
Successful hacks |
No |
Yes |
No |
Cold wallet storage |
Yes |
Yes |
Yes |
Investor protection fund |
No |
Yes |
No |
Open an account |
|
|
Short summary about the Bitbank exchange
Bitbank is a marketplace for buying and selling cryptocurrencies. You can trade Bitcoin (₿), Ethereum (Ξ), Bitcoin Cash, MonaCoin, Stellar Lumen, OMG, and dozens of other crypto assets. The only fiat currency represented is the Japanese yen (JPY). Funds can be deposited through the most popular channels, including direct fiat transfers from a bank card. The exchange is known for one of the lowest rates of trading commissions: 0.12% for the taker, and -0.02% for the maker. There are no deposit fees, and withdrawal fees are also low. There is no minimum deposit, and registration and verification take a minimum amount of time. The exchange does not have specialized solutions for beginners, and investment and referral programs are not offered. From the position of the interface, experts estimate the platform as one of the most convenient and well-thought-out.
| 💰 Account currency: | Cryptos, JPY |
| 🚀 Minimum deposit: | $1 |
| ⚖️ Leverage: | 1:1 |
| 💱 Spread: | Market |
| 🔧 Instruments: | Cryptos, JPY |
| 💹 Margin Call / Stop Out: | No |
Bitbank Pros and Cons
👍 Bitbank Pros:
•dozens of popular cryptocurrencies and tokens are traded on the exchange;
•trading fees are significantly lower than the market average;
•no minimum deposit, no deposit fees;
•all funds of exchange clients are kept cold;
•the exchange has a state-of-the-art security system for users’ data;
•there is a mobile application in addition to the terminal in the browser;
•terminal and application include tools for market analysis.
👎 Bitbank Cons:
•absence of fiat currencies except for the Japanese yen;
•there is no investment or referral program.
Rules and Regulation
Crypto regulation in Uganda
The Uganda Communications Commission (UCC) oversees the regulation of cryptocurrency activities in Uganda. For detailed information, you can visit the UCC Official Website Licensing demands for companies:
- Companies intending to operate in the cryptocurrency sector in Uganda must obtain a license from the Uganda Communications Commission (UCC).
- detailed documentation outlining company structure, financial status, and operational procedures is mandatory for licensing approval.
- compliance with Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations is a prerequisite for licensing.
- companies must meet specific minimum capital requirements set by the regulator to ensure financial stability.
- appointment of qualified personnel responsible for compliance, security, and customer support is necessary.
- implementation of robust cybersecurity measures to protect client funds and data is mandatory.
- clear procedures for handling client funds and maintaining segregated accounts must be established.
- regular reporting and audits are required to ensure transparency and compliance with regulatory standards.
- continuous monitoring of cryptocurrency activities is essential to prevent market abuse and manipulation.
- adherence to advertising and marketing guidelines set by the regulator is necessary for promotional activities.
Crypto investor protection in Uganda
Investor protection in the cryptocurrency sector in Uganda is ensured through regulations set by the Uganda Communications Commission (UCC). These regulations aim to safeguard investor interests by promoting transparency, fair trading practices, and adequate risk disclosure. Investors can find more information on their rights and protections on the Uganda Communications Commission website.
Taxation in Uganda
Revenue Authority (URA). Profits derived from cryptocurrency trading are considered taxable income and must be reported to the URA. Traders are responsible for complying with tax obligations and can find more information on tax regulations and guidelines on the Uganda Revenue Authority website.
Do I recommend using Bitbank in the Uganda?
The Bitbank cryptocurrency exchange will not be a good choice for traders from Uganda. The company does not hold a license, although the main reason for that is that the financial regulator of the country does not license crypto exchanges in general. There have been security-related incidents on the platform, and the accounts are not protected in the best possible way. Also, users periodically have questions about the quality of the exchange’s operation.
FAQ
Can I work with crypto exchanges considering that they don’t have a license in Uganda?
The fact that a crypto exchange does not have a license doesn’t mean that traders from Uganda will have problems while working with it. Cryptocurrency exchanges are not subject to licensing in many countries, while there are many exchanges with good reputation. Assess the available information about the exchange and check its reputation.
What security methods for account protection do crypto exchanges employ?
Cryptocurrency exchanges may offer various security methods. These include the two-factor authentication, first and foremost, and also such methods as a security question, additional passwords, etc.
Can an exchange that has had a security-related incident in the past be trusted?
You need to check whether such incidents were regular. If it was one episode several years ago, while the reputation of the exchange is good, you can work with such an exchange.
Should I work with an exchange if I have doubts about its reputation?
No. Always choose the cryptocurrency exchanges that have a good reputation.
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Team that worked on the article
Mikhail Vnuchkov joined Traders Union as an author in 2020. He began his professional career as a journalist-observer at a small online financial publication, where he covered global economic events and discussed their impact on the segment of financial investment, including investor income. With five years of experience in finance, Mikhail joined Traders Union team, where he is in charge of forming the pool of latest news for traders, who trade stocks, cryptocurrencies, Forex instruments and fixed income.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.