The Central Bank of Ghana—BoG recently released draft rules for crypto regulations in Ghana to serve the purpose of creating a structure for the use of cryptocurrency. This is coming in after their strict ban on crypto in 2022.
What Sparked the Need for The Regulations?
The decision of the Central Bank of Ghana came following the surge in the use of digital assets like bitcoin (BTC) and the USDT stablecoin by individuals in the region. Following this new development, the apex bank came up with the released draft regulations on August 16, setting rules in place to promote financial inclusion whilst protecting users of cryptocurrency.
In their words, “Following an extensive internal review of the surging popularity of digital assets like cryptocurrencies … in Ghana, and engagements with various stakeholders, the Bank of Ghana issues draft guidelines on digital assets. These guidelines are intended to expose the Bank’s proposed regulatory measures and solicit feedback from industry and the public.”
The Details of the Draft Guidelines For Crypto Regulations in Ghana
The regulation is aimed to tackle money laundering, fraud, and cybersecurity threats while complying with international standards.
According to local reports, the regulators are concerned with creating a regulated environment for cryptocurrency exchanges and VASPs —Virtual Asset Service Providers. VASPs and crypto exchanges are mandated to register with either the central bank or the Ghanaian Securities and Exchange Commission (SEC) in order to operate in the region.
Some other crucial requirements were stated; Exchanges would report any fraudulent or suspicious transactions to the Financial Intelligence Center in a mandated compliance with the FATF’s Travel Rule. The commercial banks weren’t left out; they’re allowed to provide services to only the registered VASPs.
Using a sandbox testing process, they intend to take note of possible issues and problems or even modify the rules as the case may be. The BoG also intends to wade into the world of Blockchain technology, exploring what it has to offer in terms of financial inclusion for the region.
Final Thoughts
Regulations on the use of digital assets are widely important. They can not be emphasized enough, as the world of crypto coming with its perks and amazing features comes with its potential in scams and fraud.
While the BoG has taken a step to put these regulations in place, showing some bit of acceptance, we can only hope other African countries can follow in this step giving crypto its place in the continent.
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