The Bank of Ghana (BoG) has introduced draft guidelines aimed at regulating digital assets, including cryptocurrencies, and is inviting feedback from industry players, experts, and the public by August 31, 2024, to shape the future of digital asset regulation in the country.
These draft guidelines are part of the BoG’s response to the growing demand for regulatory clarity on digital asset activities and follow successful sandbox testing. The central bank’s objectives include fostering innovation in the digital asset space while ensuring that risks are effectively managed.
Once the framework is finalized, all Virtual Asset Service Providers (VASPs) operating in Ghana must register and obtain authorisation from either the BoG or the Securities and Exchange Commission (SEC). Any unregistered VASP will be considered to be operating illegally.
The proposed regulatory framework will focus on exchanges and platforms dealing with virtual assets, defining the types of assets covered, and establishing guidelines for interactions between financial institutions and VASPs. The guidelines will also emphasize customer due diligence, transaction monitoring, and reporting suspicious activities in compliance with international standards, including the Financial Action Task Force (FATF) Travel Rule.
The BoG has also taken into account global regulatory standards, such as those set by the FATF, in shaping its proposed framework. In line with these standards, Enhanced Payment Service Providers (EPSPs) will be able to process virtual asset transactions for registered VASPs, while commercial banks will be permitted to offer banking services to VASPs under certain conditions.
The BoG’s draft guidelines arrive as Ghana seeks to establish a robust regulatory environment for digital assets, following in the footsteps of countries like South Africa and Kenya, both of which are also moving forward with crypto regulations. South Africa’s Financial Sector Conduct Authority (FSCA) has already begun licensing Crypto Asset Service Providers (CASPs), while Kenya is working on new cryptocurrency trading laws.
Meanwhile, the BoG and the Monetary Authority of Singapore (MAS) recently completed a proof of concept for Project DESFT, which is designed to introduce innovative solutions such as Central Bank Digital Currencies (CBDCs), stablecoins, and Universal Trusted Credentials (UTCs), marking Ghana’s growing involvement in the global digital economy.
The regulatory framework is expected to bring Ghana to the forefront of digital innovation while ensuring safety and compliance in the evolving digital asset landscape.
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