The Bank of Ghana (BoG) has released guidelines for a proposed regulatory framework for digital assets in the country.
Bank of Ghana | 2024 Draft Guidelines on Digital Assets
In line with its regulatory mandate, the Bank’s regulatory framework may target exchanges and other platforms offering buying, selling, trading, and custody services of virtual assets.
The framework will specify which… pic.twitter.com/IR8Sp9LIh2
— BitKE (@BitcoinKE) August 19, 2024
According to the apex bank, the regulatory framework is expected to feature the regulation of virtual Asset Service Providers (VASPs) within a defined set of services for money laundering (ML) and terrorism financing (TF) and consumer protection.
“In line with its regulatory mandate, the Bank’s regulatory framework may target exchanges and other platforms offering buying, selling, trading, and custody services of virtual assets,” the BoG said.
“The framework will specify which asset types are covered and address interactions between regulated financial institutions and VASPs.
“The Bank also takes notice of the amendment of FATF Recommendation 15 which requires countries to assess and mitigate the risks associated with virtual assets (VAs) and Virtual Assets Service Providers (VASPs); license or register providers and subject them to supervision or monitoring by competent national authorities.”
Commercial banks would be permitted to offer banking, payment, and settlement services exclusively for registered VASPs, the Bank of Ghana added.
Currently, all institutions licensed by the Bank of Ghana are prohibited from facilitating cryptocurrency transactions through their platforms or agents’ outlets.
Ghana Finance Minister Reminds Banks they’re ‘Prohibited from Facilitating Crypto Transactions’ Pending Regulatory Framework
Speaking on the floor of Parliament, the Finance Minister reportedly said that government is yet to develop a comprehensive framework for cypto… pic.twitter.com/aKn1jvCh4A
— BitKE (@BitcoinKE) July 19, 2023
Under the proposed framework, VASPs, including exchanges, would be required to conduct comprehensive risk assessments and implement a risk-based approach in preventing and reporting financial crime, aligning with global best practices.
Furthermore, compliance with FATF’s Travel Rule would be required. This rule necessitates the sharing of information on originators and beneficiaries of transactions.
G-7 Countries Agree to Step Up Efforts for Tighter Crypto Regulations Set by FSB and FATF Travel Rule
The G-7 has indicated it will follow the standards set by the FSB and acceleratedglobal efforts for the implementation of the FATF Travel Rulehttps://t.co/u4YsNjwmiw
— BitKE (@BitcoinKE) May 17, 2023
The framework would be developed in collaboration with various stakeholders, most notably with the Securities and Exchange Commission of Ghana.
“Once a regulatory framework or guidance is established, all Virtual Asset Service Providers (VASPs) currently operating in or intending to operate in Ghana would be required to apply for authorization from either the Bank of Ghana or SEC, depending on their specific product offerings.
Kindly, therefore, send responses and or/ recommendations regarding the proposed measures to the Bank of Ghana by or before August 31, 2024,” said BoG in a seven-page document titled ‘Draft Guidelines on Digital Assets.’
Follow us on X for the latest posts and updates
Join and interact with our Telegram community
__________________________________________
__________________________________________