Summary
Cryptocurrency trading is legal in Uganda, though it operates in a regulatory gray area. The Bank of Uganda oversees financial services but has not established comprehensive crypto regulations. Mobile money and bank transfers are the primary payment methods, with the Ugandan Shilling (UGX) supported by select crypto exchanges. Here are the best crypto exchanges in Uganda:
Best Crypto Exchanges in Uganda
Selecting the right cryptocurrency exchange in Uganda requires careful consideration of payment methods, supported currencies, and regulatory compliance. The Ugandan market presents unique opportunities with mobile money services like MTN Mobile Money and Airtel Money serving as primary transaction methods. Local traders often seek platforms that support the Ugandan Shilling (UGX) and offer integration with these payment systems.
The increasing adoption of digital payments in Uganda has led to greater demand for cryptocurrency trading platforms that accommodate local financial services. Exchanges that provide seamless integration with mobile money services and local banks maintain a competitive advantage in the Ugandan market.
1. Binance
Users:
200m
Free Demo:
Mobile App:
Bonus:
$100
Cryptos:
400+
Leverage:
125x
Spot Fees:
0.1%
Futures Fees:
0.02%/0.05%
Pros
- Most comprehensive crypto exchange
- Most advanced features and products
- 24/7 customer support
- 400+ cryptocurrencies
- Reputable with over 200 million users
- Best liquidity
Cons
- Not beginner friendly
- Restricted in many regions due to regulations
- EU traders must use BNFCR for futures trading
Overview
Reaching over 200 million registered users in 2024, Binance is by far the largest crypto exchange in the world. The platform is incredibly comprehensive, offering crypto traders all the tools they need to make a profit in the crypto market.
With over 400 cryptocurrencies to trade, leverage of up to 125x, directly integrated charts from TradingView with tons of technical analysis tools, and many more features, Binance has secured its spot as one of the best crypto exchanges.
Binance offers a wide variety of products, including spot, margin, futures, and options trading, staking, lending, P2P, automated bot trading, copy trading, and even an NFT marketplace. It is safe to say that crypto geeks will find everything they are looking for on Binance.
The trading fees on Binance are very affordable. Binance charges 0.1% trading fees on the spot market (makers and takers alike), which is the industry standard. Where Binance excels is the futures market with fees of only 0.02% for makers and 0.05% for takers.
2. MEXC
Users:
15m
Free Demo:
Mobile App:
Bonus
$20,000
Cryptos:
2400+
Leverage:
200x
Spot Fees:
0.02%
Futures Fees:
0%/0.02%
Pros
- Lowest Trading Fees
- 2000+ supported crypto assets
- 200x leverage and deep liquidity
- 24/7 customer support
- Best for altcoin and leverage trading
Cons
- Not available in the US
- Newly launched coins pose high risk
- May request KYC in the future
Overview
MEXC is known as the crypto exchange with the lowest fees. What makes MEXC stand out is its 0% maker fee offer, meaning you can trade without any fees. However, the spot and futures taker fees start at 0.02%. No crypto exchange can compete with the MEXC fee structure.
If you are a day trader seeking high leverage, MEXC may be one of your best options. With 200x leverage over 400 futures contracts and by far the lowest fees, MEXC is truly a day trading heaven.
Even if you are not interested in leverage trading, MEXC has you covered with over 2000 supported cryptocurrencies on the spot market. While MEXC offers tons of new altcoins, we recommend being cautious as the legitimacy of newly listed projects may be questionable.
All in all, MEXC is arguably the best option for high-frequency traders seeking low fees to get the best value for money.
3. Luno
Users:
2M
Free Demo:
Mobile App:
Bonus:
None
Cryptos:
25+
Leverage:
Not Supported
Spot Fees:
0.6%/0.4%
Futures Fees:
Not Supported
Pros
- Strong compliance and security focus
- User-friendly interface with mobile apps for Android and iOS
- Support for fiat currencies and credit card payments
- Low fees
Cons
- Limited cryptocurrency selection
- Lack of advanced trading features
- Limited Availability in Some Countries
Luno Overview
Luno, operating since 2013, is a cryptocurrency exchange focused on simplifying access to digital assets. The platform supports over 25 cryptocurrencies and prioritizes security and compliance, ranking among the most compliant exchanges globally as of November 2023 (CCData).
Luno offers spot trading with fees of 0.6% for takers and 0.4% for makers. Features include real-time market data, price alerts, and recurring purchases. The exchange provides mobile apps for Android and iOS, enhancing accessibility for users.
For developers and institutions, Luno offers an API for third-party integrations. Multi-signature wallets are used for secure asset storage. Luno lacks advanced features like leverage trading and futures contracts. While it offers a user-friendly experience for beginners and intermediate traders, it may not satisfy advanced traders seeking complex instruments.
Customer support is available via email and a knowledge base, but live chat and phone support are absent. Luno does not offer a free demo or sign-up bonus.
4. Bybit
Users:
40m
Free Demo:
Mobile App:
Bonus
$30,000
Cryptos:
600+
Leverage:
100x
Spot Fees:
0.1%
Futures Fees:
0.02%/0.055%
Pros
- Low fees
- 600+ supported crypto assets
- 100x leverage and deep liquidity
- Advanced order types and additional features
- Great 24/7 customer support
- Automated copy trading
Cons
- Regulatory uncertainty in Europe and USA
- May be confusing for beginners
- Cryptocurrency investments carry high risks
Overview
Bybit stands out as one of the most advanced crypto exchanges with deep liquidity and low fees. Bybit users can trade Spot, Futures, Options, NFTs, and even Inscriptions. Additionally, Bybit offers copy trading and bot trading to automate your income streams. Bybit copy trading is one of the best in the crypto industry.
Where Bybit excels is its derivatives platform with 320+ perpetual futures contracts and up to 100x leverage. With advanced order types such as TWAP or Iceberg orders, Bybit caters to experienced traders seeking the best options.
On the spot market, Bybit supports over 500 cryptos and up to 10x margin, making Bybit a versatile crypto exchange.
With low fees of 0.1% maker and 0.1% taker for spot trading and 0.02% maker and 0.055% taker for futures trading, Bybit has highly competitive fees. To top it all off, Bybit offers fee discounts based on your 30-day trading volume. The more you trade, the more you save.
5. Bitget
Users:
23m
Free Demo:
Mobile App:
Bonus
$6,200
Cryptos:
840+
Leverage:
125x
Spot Fees:
0.1%
Futures Fees:
0.02%/0.06%
Pros
- Over 800 cryptos
- Fair trading fees
- Great for EUR SEPA transfers
- 24/7 customer support
- Very beginner friendly
Cons
- Not available in the US
- No TWAP order supported
- Mandatory KYC for new accounts
Overview
Bitget is a true powerhouse for crypto traders from over 100 supported countries. What makes Bitget special is its beginner-friendly trading platform, which has over 800 supported cryptocurrencies. With so many supported cryptocurrencies, if you are looking to trade altcoins, Bitget might be one of your best shots.
With fiat support for 6 currencies, including EUR and RUB, Bitget is a top choice, especially for European users looking to deposit and withdraw funds in their native currency with ease. The 0% fee for SEPA transactions makes Bitget stand out. Credit card payments are also supported.
Experienced crypto traders can trade futures contracts on Bitget with 125x leverage on selected assets such as Bitcoin or Ethereum.
The spot trading fees start at 0.1% for makers and takers, which is very common in the industry. For futures traders seeking leverage for their day trading activities, Bitget charges very low fees of 0.02% maker and 0.06% taker.
Is Crypto Legal and Regulated in Uganda?
Cryptocurrency exists in a regulatory gray area in Uganda. The Bank of Uganda (BoU) maintains oversight of financial services but has not established comprehensive cryptocurrency regulations. In 2017, the BoU issued a warning about cryptocurrency risks but did not prohibit their use.
The Uganda Revenue Authority (URA) acknowledges cryptocurrency transactions and requires reporting for tax purposes. The Parliament of Uganda is currently developing a regulatory framework through the National Payments Systems Act, which will provide clearer guidelines for cryptocurrency operations.
While there are no specific licenses required for cryptocurrency trading, financial institutions must comply with anti-money laundering (AML) and know-your-customer (KYC) requirements when handling crypto-related transactions. The Capital Markets Authority monitors cryptocurrency activities but has not implemented specific regulations.
Is Crypto Taxable in Uganda?
Cryptocurrency taxation in Uganda follows the general income tax principles established by the URA. Profits from cryptocurrency trading are subject to income tax rates ranging from 10% to 30%, depending on the amount earned. Capital gains from long-term cryptocurrency holdings are taxed at 30%.
The URA requires traders to maintain detailed records of all cryptocurrency transactions, including purchase prices, sale prices, and dates. Mining income is classified as business income and taxed accordingly. Failure to report cryptocurrency gains can result in penalties of up to 20% of the unreported amount.
Disclaimer:
Tax laws are subject to change, and individual circumstances may vary. It is strongly advised to consult with a qualified tax professional or financial advisor for personalized guidance on cryptocurrency taxation in Uganda.
How to Buy Crypto in Uganda
Purchasing cryptocurrency in Uganda requires selecting an exchange that supports local payment methods and complies with regulations. Binance offers the most comprehensive service for Ugandan residents, supporting mobile money transfers and the local currency.
- Choose a Suitable Exchange: Look for a cryptocurrency exchange that accepts the Ugandan Shilling (UGX) and provides preferred payment options such as Mobile Money or bank transfers.
- Register and Verify Your Identity: Complete the sign-up process by submitting the necessary identification documents for KYC (Know Your Customer) verification.
- Fund Your Account: Add funds to your account using MTN Mobile Money, Airtel Money, or bank transfer in UGX.
- Select Your Cryptocurrencies: Pick from well-known cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), or stablecoins such as USDT.
- Place Your Trade: Execute your trade by specifying the desired amount and confirming the transaction details.
- Secure Your Assets: Transfer the cryptocurrencies you’ve purchased to a secure wallet for long-term storage.
It’s important to be aware of transaction limits and verification procedures while trading in Uganda. Most exchanges use tiered verification systems, allowing fully verified accounts to access higher limits. Generally, mobile money transactions have lower limits compared to bank transfers but provide enhanced accessibility and quicker processing times.
Best Crypto Wallets in Uganda
Securing cryptocurrency holdings necessitates dependable wallet options. Ledger and Trezor hardware wallets deliver top-notch protection for long-term asset storage. For frequent transactions, Trust Wallet provides a convenient mobile platform compatible with various cryptocurrencies.
MetaMask is an invaluable resource for engaging with decentralized applications and DeFi platforms. Meanwhile, Exodus offers an intuitive desktop experience, complete with built-in exchange functionalities. When choosing a wallet, it’s essential to evaluate aspects like security features, the range of supported currencies, and backup options.
Local cryptocurrency enthusiasts in Uganda frequently advise users to maintain both hot and cold wallets for enhanced security. Hot wallets allow for swift trades and daily transactions, while cold storage options protect larger amounts from potential security vulnerabilities.
Bottom Line
For cryptocurrency trading in Uganda, Binance stands as the leading option among the best crypto exchanges in Uganda, offering comprehensive mobile money support and competitive fees. MEXC provides an excellent alternative with its extensive cryptocurrency selection and reliable trading infrastructure. Both platforms maintain strong security measures and support multiple payment methods suitable for Ugandan traders.
