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Ghana’s central bank releases draft regulations for crypto exchanges

Ghana’s central bank releases draft regulations for crypto exchanges

GrafaGrafa2024/08/19 06:45
By:Liezl Gambe

Ghana's central bank has made a significant move towards regulating the cryptocurrency industry by issuing draft guidelines for Virtual Asset Service Providers (VASPs). 

This development follows a thorough review of the growing popularity of cryptocurrencies in the country, driven by a tech-savvy youth population, high internet usage, and the increasing presence of online companies offering crypto services. 

The draft guidelines aim to address the benefits of cryptocurrency while being mindful of the associated risks. 

The central bank intends to regulate VASPs within a specific set of services, focusing on preventing money laundering and terrorism financing, ensuring consumer protection, and implementing other necessary measures. 

Under these guidelines, VASPs would be required to perform customer due diligence, monitor transactions, and report any suspicious activity to the Financial Intelligence Centre. 

In addition to regulating VASPs, the central bank plans to collaborate with the Securities and Exchange Commission (SEC) to develop complementary regulatory frameworks for various crypto applications and use cases. 

Once these frameworks are in place, all VASPs operating in Ghana will need to apply for authorisation from either the Bank of Ghana or the SEC, depending on their specific product offerings. 

The draft guidelines also propose that commercial banks be permitted to offer banking, payment, and settlement services for registered VASPs. 

This inclusion is intended to integrate the traditional financial system with the emerging crypto market, providing a more robust and secure environment for cryptocurrency transactions. 

The central bank has invited feedback from both the crypto industry and the general public on these proposed regulations, with comments to be submitted by August 31. 

This consultation process reflects the bank’s commitment to creating a well-rounded regulatory framework that balances innovation with security, ultimately fostering a safer and more transparent crypto market in Ghana.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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