- The Central Bank of Ghana has conducted a study on the growing use of cryptocurrencies.
- It has presented a draft regulation on how it intends to regulate VASPs.
- The bank is seeking input from the public and the crypto industry.
The central bank of Ghana, a West African country with a population of about 30 million, has released draft guidelines for digital assets after a thorough review of the growing popularity of cryptocurrencies, as well as engagements with various stakeholders.
Over the past three years, the bank noted, the use of cryptocurrencies by Ghanaians has increased due to a tech-savvy youth population, high internet usage and the rise of online businesses offering cryptocurrency services, commonly known as Virtual Asset Service Providers (VASPs).
While acknowledging the beneficial applications of crypto, the bank said it would be vigilant about the risks.
It provides for the regulation of real estate investment service providers, within a defined set of services, in relation to money laundering and terrorist financing, consumer protection and any other measures it deems appropriate. Real estate investment service providers would be required to carry out due diligence on customers and monitor transactions, and report to the Financial Intelligence Centre.
Additionally, the central bank would work with the Securities and Exchange Commission to develop complementary regulatory frameworks for various applications or use cases of crypto.
Once a regulatory framework is established, all VASPs operating in Ghana will be required to apply for authorisation from the Bank of Ghana or the SEC, depending on their specific product offerings.
Commercial banks would be allowed to offer banking, payment and settlement services to registered VASPs.
The guidelines are intended to outline the bank’s proposed regulatory measures and solicit comments from industry and the public by Aug. 31, according to the draft, which included an email address to register those comments.
Join the community to receive our latest stories and updates
