Bank of Ghana Proposes New Digital Asset Regulations

The Bank of Ghana (BoG) has taken a big move in the direction of overseeing cryptocurrencies in the nation by announcing a number of suggested regulatory measures for digital assets. After conducting a thorough analysis of Bitcoin (BTC), Tether (USDT), and other virtual currencies, the central bank hopes to address the mounting dangers and concerns related to the cryptocurrency industry.

The BoG released draft rules on August 16, 2024, with the goal of more effectively regulating digital assets. These rules are a part of a larger effort to control Ghana’s growing interest in cryptocurrency. Three years’ worth of data from the bank shows that Ghanaians are using digital assets much more frequently now. As a result, the BoG is concentrated on enacting legislation to prevent money laundering, finance terrorism, and fraud, as well as to improve consumer protection.

The proposed framework outlines eight key areas for regulation, primarily targeting the registration and reporting practices of cryptocurrency exchanges and Virtual Asset Service Providers (VASPs). The BoG’s goal is to ensure greater transparency and accountability in the crypto space.

Emphasis on Crypto Exchanges

Under the new regulations, cryptocurrency exchanges will face stricter requirements. They will need to monitor and report suspicious transactions, aligning with the Financial Action Task Force (FATF) Travel Rule. The BoG plans to work closely with commercial banks and international regulators to bolster these efforts.

Additionally, the Securities and Exchange Commission (SEC) and the Bank of Ghana (BoG) plan to work together to develop complementary regulatory frameworks that cover different applications of digital assets. The goal of this collaboration is to give the developing cryptocurrency sector a stable regulatory framework.

The BoG is soliciting feedback from experts, members of the public, and industry stakeholders as part of the regulation process. Please respond before August 31, 2024. These observations will be included by the central bank into its ultimate regulation strategy.

According to the draft proposal, “The bank will consider these inputs in determining the next steps forward.” This collaborative approach aims to ensure that the new regulations are well-informed and effective in addressing the unique challenges posed by digital assets.