Key Points
- Bank of Ghana has proposed draft rules for cryptocurrency exchanges.
- The guidelines are designed to ensure safety, prevent misuse, and maintain stability in the financial sector.
The Bank of Ghana has released draft regulations for cryptocurrency exchanges. This follows a comprehensive review of prevalent cryptocurrencies in Ghana, including Bitcoin (BTC) and the USDT stablecoin.
Guidelines Aimed at Safety and Stability
The central bank asserts that these draft rules strive to protect consumers and maintain financial stability, given the inherent risks and volatility associated with cryptocurrencies.
Under the new guidelines, Virtual Asset Service Providers (VASPs) and other service providers are required to perform rigorous customer due diligence and continuous transaction monitoring. This is to prevent the misuse of cryptocurrencies for illegal activities, such as money laundering.
VASPs in Ghana, under the proposed regulations, must report any suspicious transactions to the Financial Intelligence Centre (FIC). These service providers must also conduct thorough risk assessments and implement risk-based approaches that align with international standards.
The Bank of Ghana emphasizes that these measures are crucial to ensure the secure and compliant use of digital assets in the country.
Collaboration with Other Regulatory Bodies
The Bank of Ghana plans to work with the country’s SEC to create a robust regulatory environment that covers various applications of digital assets.
This collaboration aims to provide distinct regulatory frameworks that cater to the different mandates of both institutions, ensuring comprehensive oversight of the digital asset industry. Under the drafted legislation, Enhanced Payment Service Providers (EPSPs) might be allowed to process virtual asset transactions exclusively for registered VASPs, provided they obtain prior authorization.
However, EPSPs will be prohibited from operating exchanges or engaging in other virtual asset-related businesses, such as custody services, unless these activities are carried out by separate entities funded independently of the EPSPs. Commercial banks in Ghana will be permitted to offer banking, payment, and settlement services to registered VASPs, under the same conditions applied to EPSPs.
