The Bank of Ghana (BoG) has released draft guidelines to regulate cryptocurrencies such as Bitcoin and Tether, marking a significant shift in its approach to digital assets.
This move signals the BoG’s intention to formalize its stance on cryptocurrency and other digital assets while soliciting feedback from industry stakeholders and the public.
Previously, the BoG had prohibited regulated financial institutions from engaging in transactions involving cryptocurrencies or unregulated digital assets.
However, the new draft guidelines indicate that the central bank is now preparing to establish a regulatory framework that will allow these institutions to engage in digital asset transactions legally.
Despite the BoG’s previous restrictions, the use and trade of cryptocurrencies in Ghana have surged outside the mainstream banking sector.
This growth has been driven by high mobile money penetration, a tech-savvy youth demographic, increased internet usage, and the proliferation of Virtual Asset Service Providers (VASPs) offering crypto and virtual asset services.
The seven-page draft guidelines outline several key areas: an introduction to the subject, definitions of key terms, an overview of the digital asset landscape, policy considerations, regulatory objectives, the scope of proposed regulations, the regulatory approach, and the consultative process.
The BoG’s policy considerations acknowledge the benefits of digital assets in areas such as cross-border payments, charitable donations, crowdfunding, and international remittances.
However, the draft also highlights concerns related to money laundering, terrorism financing, fraud, cyber theft, capital flow management, and consumer protection.
The guidelines propose a regulatory framework for exchanges and platforms that deal in buying, selling, trading, and custodianship of virtual assets.
This framework will define the types of assets covered and address interactions between regulated financial institutions and VASPs.
The BoG plans to collaborate with other regulatory bodies, including the Securities and Exchange Commission (SEC), to ensure a cohesive regulatory approach.
The primary objectives of the proposed regulations are to:
- Ensure the integrity and stability of the financial sector;
- Protect consumers and investors;
- Combat financial crime, including anti-money laundering (AML) and counter-terrorism financing (CFT);
- Foster innovation and market integrity;
- Enhance domestic coordination in managing risks associated with crypto asset service providers;
- Promote international cooperation in combating financial crime;
- Address cybersecurity risks.
The BoG seeks public and industry feedback on these draft guidelines to refine and finalize its regulatory approach.
This initiative represents a significant step toward integrating cryptocurrency and digital assets into Ghana’s financial regulatory framework.
Find the full Draft-Guidelines-on-Digital-Assets
