Legal professionals have been urged to deepen their understanding of virtual assets, including their risks and emerging regulatory frameworks, as digital finance continues to expand globally.
Speaking during the weekly press briefing organised by the Uganda Law Society in Kampala on Thursday, Louis Namwanja Kizito, a partner at Pentagon Advocates, said lawyers must prepare for the growing role of virtual assets in financial and commercial transactions.
"As virtual assets become more common, an important question arises: how should the law recognize them? Legal recognition is crucial because it determines how these assets are treated in contracts, taxation, property rights, and dispute resolution," Kizito said.
He explained that establishing a clear legal framework for digital assets provides certainty for businesses and investors while enabling the assets to be integrated into Uganda's broader financial and commercial systems.
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Kizito noted that although virtual assets present new opportunities, they also carry significant risks that legal practitioners must understand.
"These include price volatility, cybersecurity threats, fraud, and the potential misuse of virtual assets for activities such as money laundering or terrorist financing. Because transactions on blockchain networks can occur quickly and across borders, regulators must carefully balance innovation with financial stability and consumer protection," he said.
He called on lawyers to equip themselves with knowledge of blockchain technology, virtual asset transactions and evolving regulatory frameworks in order to effectively advise clients and contribute to policymaking.
"Lawyers must develop an understanding of these areas to advise clients effectively, draft contracts incorporating digital assets, and contribute to policy discussions on regulating this rapidly developing sector," he said.
Kizito also urged Uganda to align its legal and financial practices with international standards to remain competitive in global markets.
"As we look at the future, it is important to understand where we are coming from and where we need to go, particularly in areas such as intellectual property and financial markets. Countries need to follow global market practices in order to compete effectively internationally," he said.
He added that alignment with global market practices would enable countries to benefit from international exchange pricing, navigate temporary financial restrictions, expand markets and allow investors to participate more actively in global trade.
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