The Bank of Ghana has taken a bold step towards regulating the growing digital asset space by introducing new draft regulations aimed at establishing a comprehensive framework for cryptocurrencies in the country. Announced on August 16, 2024, the proposed guidelines are designed to boost financial inclusion, safeguard consumers, and ensure economic stability as Ghana’s interest in digital assets continues to rise.
The move comes after an extensive internal review of major cryptocurrencies like Bitcoin and Tether (USDT), acknowledging the increasing adoption of digital currencies for cross-border payments, remittances, and crowdfunding. While cryptocurrency transactions still represent a small slice of financial activities in Ghana, their growth has underscored the need for clearer regulatory measures.
A key focus of the new regulations is on cryptocurrency exchanges and Virtual Asset Service Providers (VASPs), who will now be required to register with either the Bank of Ghana or the Securities and Exchange Commission (SEC). These registered entities must comply with anti-money laundering (AML) and counter-terrorism financing (CFT) rules, as well as adhere to the FATF’s Travel Rule. Any suspicious activity will need to be reported to the Financial Intelligence Centre (FIC).
VASPs must also demonstrate robust internal controls, effective risk management practices, and meet minimum capital requirements. Meanwhile, commercial banks will be restricted from engaging with unregistered VASPs and handling virtual assets directly.
Before finalizing the regulations, the Bank of Ghana plans to conduct a “sandbox testing process” with selected VASPs to refine the framework. While no exact timeline has been given for the new laws to take effect, industry stakeholders and the public are encouraged to submit feedback on the draft regulations by August 31, 2024.
Beyond cryptocurrency regulation, the Bank of Ghana continues to advance its central bank digital currency (CBDC) project, the eCedi, and has also made strides in blockchain innovation with Ghana Post launching the country’s first NFT stamp. These initiatives demonstrate the nation’s commitment to embracing the digital finance revolution while ensuring consumer protection and economic stability.
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