The Bank of Ghana (BoG) has taken a significant step toward regulating the cryptocurrency market by releasing draft rules for digital asset service providers in the country.
According to an announcement, the proposed guidelines for exchanges come after an extensive review of some of the popular cryptocurrencies in Ghana, such as Bitcoin (BTC) and the USDT stablecoin.
New Guidelines to Ensure Safety and Stability
The central bank stated that the draft rules are designed to safeguard consumers and maintain financial stability in the face of the inherent volatility and risks associated with cryptocurrencies.
According to the BoG, these new guidelines will require Virtual Asset Service Providers (VASPs) and other service providers to perform rigorous customer due diligence and continuous transaction monitoring. The aim is to prevent the misuse of cryptocurrencies for illegal activities, including money laundering.
Under the proposed regulations, VASPs in Ghana will be obligated to report any suspicious transactions to the Financial Intelligence Centre (FIC). To combat financial crime effectively, these service providers must conduct thorough risk assessments and implement risk-based approaches that align with international standards.
The BoG emphasized that these measures are necessary to ensure that the use of digital assets in the country is both secure and compliant with global financial practices. It has also made it clear that once the regulatory framework is established, all VASPs operating or planning to operate in Ghana must apply for authorization from either the BoG or the SEC, depending on their specific services. The central bank also warned that non-compliance with the new requirements will result in the service provider being deemed as operating illegally within the country.
BoG to Collaborate With Other Regulatory Bodies
In addition to combating financial crime, the Bank of Ghana plans to collaborate with the country’s SEC to create a robust regulatory environment that covers various applications of digital assets.
According to the announcement, 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. The BoG also disclosed that 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. The central bank of the West African country also disclosed that commercial banks in Ghana will be permitted to offer banking, payment, and settlement services to registered VASPs, under the same conditions applied to EPSPs.
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