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Ghana central bank introduces proposed virtual asset rules

Ghana central bank introduces proposed virtual asset rules

GrafaGrafa2024/08/20 10:20
By:Isaac Francis

The Bank of Ghana (BoG) has unveiled draft regulations aimed at governing the use of cryptocurrencies in the country, reflecting the central bank’s response to the growing popularity of digital assets.  

These proposed regulations seek to create a framework that balances the innovative potential of cryptocurrencies with the need for financial stability and security.  

Ghana has seen a significant rise in cryptocurrency adoption, driven by factors such as high internet usage, a tech-savvy youth population, and the increasing presence of virtual asset service providers (VASPs).  

While digital assets offer benefits like enhanced international remittances and increased privacy in transactions, they also pose risks, including cyber-theft, money laundering, and terrorism financing.  

The BoG’s initiative aims to harness the positive aspects of cryptocurrencies while mitigating these associated risks.  

The draft regulations have several key objectives.  

First, they aim to foster innovation within the cryptocurrency space while managing the risks involved.  

This includes promoting international cooperation against financial crimes and strengthening domestic risk management practices.  

Second, the regulations will focus on establishing clear rules for cryptocurrency exchanges and similar platforms, ensuring a structured relationship between VASPs and traditional financial institutions.  

Additionally, the BoG plans to collaborate with other regulatory bodies, such as the Securities and Exchange Commission (SEC), to create a comprehensive regulatory approach.  

Key measures in the proposed regulations include requiring VASPs to monitor transactions, conduct customer due diligence, and report suspicious activities to the Financial Intelligence Centre (FIC).  

Enhanced Payment Service Providers (EPSPs) will be allowed to process crypto transactions, but only for registered VASPs.  

The BoG is inviting feedback from stakeholders and the public to refine these regulations, with comments due by August 31, 2024.  

This collaborative approach aims to ensure that the regulations support the growth of Ghana's cryptocurrency sector while safeguarding financial stability.  

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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