Originally published on: August 16, 2024
The Bank of Ghana (BoG) is making strides in the regulation of digital assets by unveiling draft rules for cryptocurrency exchanges. After conducting a thorough internal review of cryptocurrencies like Bitcoin and Tether, the central bank of the West African nation has proposed new regulatory measures.
In an announcement made on Aug. 16, the BoG issued draft guidelines on digital assets and is currently seeking feedback from the public and industry stakeholders on the upcoming crypto regulations. With a noticeable increase in Ghana’s interest in cryptocurrency over the past three years, the BoG aims to address risks associated with money laundering, terrorism financing, fraud, and consumer protection.
The proposed regulations introduce an eight-pillar framework for crypto regulations, emphasizing the need to enhance the registration and reporting requirements for cryptocurrency exchanges and virtual asset service providers (VASPs). Among the key provisions is the monitoring and reporting of suspicious transactions, as well as compliance with the Financial Action Task Force’s Travel Rule. The BoG also intends to collaborate with commercial banks and offshore regulators in enforcing these regulations.
To operate in Ghana, crypto exchanges will be required to register with the BoG and undergo sandbox testing before offering trading services. The central bank is welcoming recommendations from industry experts, players, and the general public until Aug. 31 to inform the finalization of these regulations.
Following the unveiling of draft rules for cryptocurrency exchanges, the Bank of Ghana is taking proactive steps towards creating a secure and regulated environment for digital assets in the country. Stay tuned for updates on Ghana’s evolving cryptocurrency landscape.