The Bank of Ghana (BOG) has released a draft of guidelines for digital assets in the country. The draft follows the BOG’s review of the surging popularity of digital assets like cryptocurrencies such as Bitcoin and Tether (USDT) in Ghana.
Details
According to the regulator, the guidelines are intended to expose the Bank’s proposed regulatory measures and solicit feedback from industry and the public.
Digging Deeper
The BOG states that its regulatory framework may target exchanges and other platforms offering buying, selling, trading, and custody services of virtual assets.
The framework will specify which asset types are covered and address interactions between regulated financial institutions and VASPs.
The Bank will collaborate with other regulatory agencies, such as the SEC, to develop and implement complementary frameworks aligned with each institution’s regulatory mandate.
The Big Picture
The BOG states that once a regulatory framework or guidance has been established, all Virtual Asset Service Providers (VASPs) currently operating in or intending to operate in Ghana would be required to apply for authorization from either the Bank of Ghana or SEC, depending on their specific product offerings.
VASPs that do not register within the specified timeline will be considered to be operating illegally in the country;
Between The Lines
In its guideline documentation, the BOG states that there remain challenges including regulatory and legal uncertainty, cybersecurity risks, market manipulation, and consumer protection concerns.
The Bank is currently open to inputs in determining the next steps forward. Responses and or/ recommendations regarding the proposed measures to the Bank of Ghana by or before August 31, 2024. Submissions should be sent to FinTech@bog.gov.gh.
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