Anika Begay
Amid the global rush to regulate cryptocurrencies, Ghana, a West African country, has stepped forward to draft new rules for this nascent financial sector.
The Bank of Ghana (BoG) has taken steps to establish a regulatory framework for cryptocurrencies such as Bitcoin and Tether, unveiling a set of interim guidelines to strengthen oversight of digital assets, according to a document released today.
The paper notes that this development extends an analysis conducted over the past three years, which reflects a growing national commitment to cryptocurrencies.
Regulations in progress
The proposed regulations mark a significant milestone in Ghana’s journey towards cryptocurrency adoption. The central bank is now actively soliciting input from both the public and industry stakeholders to refine and finalize the regulations. The document reads:
This is in line with the Bank’s commitment to continuously develop an enabling regulatory environment that promotes financial inclusion and enhances financial stability.
In particular, the BoG draft guidelines introduce an eight-pillar framework designed to address the various risks associated with digital activities, such as money laundering, terrorist financing and consumer fraud.
At the heart of these regulations is “improving” registration and reporting protocols for cryptocurrency exchanges and other virtual asset service providers (VASPs).
Under the new rules, exchanges must implement “strong” mechanisms to monitor and report suspicious transactions, in line with the Financial Action Task Force’s Travel Rule.
Driving the Cryptocurrency Sector in Ghana
Additionally, the proposed regulations require all cryptocurrency exchanges to undergo a “thorough registration process” with the BoG and participate in sandbox testing before they can operate.
According to the draft, this step is essential to ensure that all market players adhere to the “highest standards of safety and operational integrity.”
Collaborative efforts between the BoG and external entities, including commercial banks and offshore regulators, aim to create a cohesive regulatory environment that supports the growth of the digital economy while protecting stakeholders.
The feedback period, open until August 31, provides an opportunity for industry experts, cryptocurrency enthusiasts, and the general public to help shape Ghana’s digital currency regulatory space. The BoG noted in the document:
The Bank appreciates the views and recommendations of industry participants, experts and the public regarding the proposed regulatory measures described in this document. […] The Bank will take these contributions into account when determining the next steps to take.
It is worth noting that this consultation period is crucial for the country’s crypto sector, as it will likely influence the final structure of the regulation, both negative and positive, and its implementation.
Featured image created with DALL-E, chart from TradingView
