Last week, it was announced that the Ghana SEC is exploring licensure for digital assets, including cryptocurrencies and security tokens. While digital currencies are not currently legal tender within the country, the SEC is considering licensing platforms so that they could be used to transact business.
“Currently, exchanges aren’t licensed in Ghana, as well as in many other places throughout the globe,” said Richard Gardner, CEO of Modulus, a US-based developer of ultra-high-performance trading technology that powers global equities, derivatives, and cryptocurrency exchanges. “The value in licensing is that it creates a standard rulebook — a set of regulations by which licensed exchanges must abide.”
Crypto investors currently trade digital assets at their own risk, but the commission is working to research the burgeoning industry and find a way to make it a viable industry within the country. “What’s great about what we’ve heard from Deputy Director General Paul Ababio is that he is looking for input as the commission begins to look at drafting regulations and considering licensure,” noted Gardner.
“The best way to regulate an industry, especially one which is so technical, is to bring together those involved in the private sector, along with those from the public policy side. Together, we can usually find a way to encourage industry growth while protecting consumers,” explained Gardner. “It’s likely that they’re going to want to look at attempting to bring responsible oversight to the industry — through the use of new technology and a cutting-edge security apparatus, cryptocurrency exchange administrators must endeavor to bring an end to money laundering, abusive trading behavior, and market manipulation.”
Modulus is known throughout the financial technology segment as a leader in the development of high frequency trading systems and exchanges. Over the past twenty years, the company has built a client list which includes Goldman Sachs, Merrill Lynch, JP Morgan Chase, Bank of America, Barclays, NASA, Siemens, Shell, Yahoo!, Microsoft, Cornell University, and University of Chicago.
Since 1997, Modulus has provided advanced financial technology products and services to professional traders, brokerages, trading firms, and educational, governmental, and non-profit institutions throughout 94 countries. The company’s products and services reach millions of users around the world.