According to PANews, the Bank of Ghana (BoG) has released a draft of regulations aimed at establishing a framework for the cryptocurrency industry. These rules are designed to protect consumers, prevent financial crimes, and encourage financial inclusion. Virtual Asset Service Providers (VASPs) will be required to register and meet stringent standards, while commercial banks are prohibited from directly engaging with virtual asset businesses. The public has the opportunity to provide feedback on the proposed regulations before they are finalized.
The BoG's draft regulations, published on August 16, aim to create a regulatory framework for digital assets to promote financial inclusion while safeguarding cryptocurrency users. The central bank's decision follows a comprehensive analysis of digital assets such as Bitcoin (BTC) and the stablecoin USDT. The analysis revealed that with the rise of the internet and VASPs, Ghana's tech-savvy population is increasingly using digital assets. Although cryptocurrency usage remains low compared to traditional finance, the BoG believes that the role of cryptocurrencies in cross-border payments and remittances necessitates regulation. These regulations aim to address issues such as money laundering, fraud, and cybersecurity threats while adhering to international standards.
Additionally, VASPs must meet capital requirements and have internal control and risk management frameworks in place. The draft specifies that commercial and registered financial institutions can only provide services to registered VASPs. No bank or financial institution is allowed to directly handle business related to virtual assets. Before finalizing the regulations, the BoG will conduct a sandbox testing process to identify potential issues or refine the rules. The public can submit feedback until August 31.
