THE Bank of Ghana (BOG) has been released a draft guidelines for digital assets in the country. The draft follows BOG’s overview of the growing popularity of digital assets such as cryptocurrencies such as Bitcoin and Tether (USDT) in Ghana.
Details
According to the regulator, the guidelines are intended to set out the Bank’s proposed regulatory measures and solicit comments from industry and the public.
Digging deeper
BOG states that its regulatory framework may target exchanges and other platforms that offer services for buying, selling, trading and custody of virtual assets.
The framework will specify which types of assets are covered and address interactions between regulated financial institutions and VASPs.
The Bank will work with other regulatory bodies, such as the SEC, to develop and implement complementary frameworks aligned with each institution’s regulatory mandate.
The Big Picture
The BoE states that once a regulatory framework or guidance is in place, everything Virtual Component Service Providers (VASPs) currently operating or intending to operate in Ghana should apply for a license from either the Bank of Ghana or the SEC depending on their specific product offerings.
VASPs who do not register within the specified timeframe will be deemed to be operating illegally in the country.
Between the Lines
In the guidance document, the BOG states that challenges remain, including regulatory and legal uncertainty, cyber security risks, market manipulation and consumer protection concerns.
The Bank is currently open to input in determining next steps. Responses and/or recommendations on the proposed measures to the Bank of Ghana on or before 31 August 2024. Submissions should be sent to FinTech@bog.gov.gh.
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