As a seasoned analyst with over two decades of experience in finance and regulation, I find these new guidelines proposed by the Bank of Ghana (BoG) to be a much-needed step in the right direction for the cryptocurrency market in Ghana. With my background in combating financial crimes, I have seen firsthand the potential risks associated with unregulated digital assets.
As a thorough analyst, I have been informed that the newly suggested rules for digital asset exchanges stem from a comprehensive evaluation of prominent cryptocurrencies prevalent within Ghana, including but not limited to Bitcoin (BTC) and the USDT stablecoin.
New Guidelines to Ensure Safety and Stability
The central bank explained that the proposed guidelines aim to protect consumers and ensure financial security, as they address the unpredictable nature and potential dangers linked to using cryptocurrencies.
As per the Bank of Governors’ announcement, these fresh regulations demand that Virtual Asset Service Providers (VASPs) as well as other related services strictly conduct thorough customer verification and ongoing transaction surveillance. The objective behind this is to deter the use of cryptocurrencies in illicit activities such as money laundering and illegal transactions.
According to the suggested guidelines, Virtual Asset Service Providers (VASPs) in Ghana will need to report any transactions that seem suspicious to the Financial Intelligence Centre (FIC). To efficiently fight financial crimes, these service providers should carry out comprehensive risk assessments and adopt risk-based strategies that adhere to international norms.
1. The Bank of Ghana (BoG) has underscored the importance of implementing these measures to guarantee that digital asset utilization within the nation is both secure and consistent with international financial standards. Furthermore, they’ve clarified that any Virtual Asset Service Providers (VASPs) intending to function or expand their operations in Ghana must seek approval from either the BoG or the Securities and Exchange Commission (SEC), based on the nature of their services. Lastly, the central bank has issued a caution that failure to adhere to these new regulations will be considered as illegal operation within the country.
BoG to Collaborate With Other Regulatory Bodies
Beyond fighting financial fraud, the Bank of Ghana intends to partner with the Securities and Exchange Commission (SEC) to establish a strong regulatory framework encompassing diverse uses of digital currencies within our nation.
As stated in the announcement, this partnership intends to establish unique regulatory structures suitable for each institution’s specific roles. This setup aims to provide thorough monitoring of the digital asset sector as a whole. Moreover, the Bank of Ghana revealed that, pending approval, Enhanced Payment Service Providers (EPSPs) could handle virtual asset transactions solely for registered Virtual Asset Service Providers (VASPs). However, they must secure prior authorization first.
In summary, Electronic Payment Service Providers (EPSPs) won’t be allowed to run exchanges or provide other virtual asset-related services such as custody, unless these functions are handled by separate entities with independent funding. Meanwhile, commercial banks in Ghana can offer banking, payment, and settlement services to registered Virtual Asset Service Providers (VASPs), under the same conditions applicable to EPSPs. This information was revealed by the central bank of this West African nation.
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2024-08-16 12:20