The Bank of Ghana (BoG) has introduced new draft rules for digital assets like cryptocurrencies.
Announced on August 16, 2024, these rules aim to improve financial access, ensure economic stability, and protect consumers as the use of digital assets grows.
The rules follow a thorough review of cryptocurrencies such as Bitcoin and Tether (USDT), reflecting increased interest in digital assets among Ghanaians.
The BoG found that more people are using digital assets due to better internet access and new Virtual Asset Service Providers (VASPs).
Although crypto transactions are still small compared to traditional banking, the rise in digital asset use for things like international payments and crowdfunding highlights the need for clear rules.
The draft regulations focus on preventing issues like money laundering, fraud, and cybersecurity threats, following global standards set by the Financial Action Task Force (FATF).
The new rules will require cryptocurrency exchanges and VASPs to register with either the Bank of Ghana or the Securities and Exchange Commission (SEC), depending on what they offer.
These registered entities must follow anti-money laundering (AML) and counter-terrorism financing (CFT) rules and report suspicious activities to the Financial Intelligence Centre (FIC).
To operate legally in Ghana, VASPs must show they have good internal controls, risk management, and meet capital requirements.
Banks and financial institutions can only provide services to registered VASPs and cannot deal directly with virtual asset businesses or hold crypto assets.
The BoG plans to test these rules with selected VASPs before finalizing them.
They invite feedback on the draft regulations by August 31, 2024, though the exact timeline for the rules becoming law is not yet set.
In addition to regulating cryptocurrencies, the BoG is also working on Ghana’s digital currency, the eCedi, which aims to modernize financial services.
Earlier this year, Ghana Post introduced its first NFT stamp to celebrate a local king’s anniversary.
These new regulations represent a major step in integrating digital assets into Ghana’s financial system while ensuring protections for consumers and financial stability. Ghana is set to play an active role in the future of digital finance.
