- BoG said the data it collected during the review period indicated an increased interest in cryptocurrencies
- The eight-pillar framework for cryptocurrency regulations by the central bank primarily focuses on tightening the requirements for cryptocurrency exchanges
- Before exchanges are permitted to offer trading services in Ghana, they must also register with the BOG and go through sandbox testing
The Bank of Ghana (BoG) has unveiled proposed new regulations for cryptocurrencies, crypto exchanges and other digital assets in the country.
The bank announced the new draft on August 16, stating that it was open to receiving feedback from the public, industry stakeholders and crypto enthusiasts to fine-tune it before unveiling the entire regulation.
The draft came after the bank spent about three years reviewing Bitcoin, stablecoin USDT and other cryptocurrencies.
The bank said the data it collected during the review period indicated an increased interest in cryptocurrencies and digital assets. Hence, the expected regulation is meant to protect the country and its citizens against risks in crypto, including money laundering, terrorism financing and fraud.
The proposed eight-pillar framework focuses on tightening the requirements for cryptocurrency exchanges and virtual asset service providers (VASPs) to register and report.
“This means VASPs would be required to perform customer due diligence and transaction monitoring, and report suspicious transactions to the Financial Intelligence Centre (FIC),” the draft read.
Other parts of the regulation with attention to VASPs and crypto exchanges include: "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.”
Other parts read: “The Bank would collaborate with the Securities and Exchange Commission (SEC) to develop distinct complementary regulatory frameworks that encompass various applications or use cases of digital assets. These frameworks would be informed by the specific mandates of both the BOG and SEC.”
It also said that “Enhanced Payment Service Providers (EPSPs) may be permitted to process virtual asset transactions, exclusively for registered VASPs (i.e, when a registration framework is established), subject to prior authorization from the Bank. However, EPSPs would be prohibited from operating exchanges or engaging in any other virtual asset-related businesses, owning, or holding virtual assets, or providing custodial services. Shareholders may establish separate entities for virtual asset activities, provided that funding for such ventures is not sourced from the EPSP. The Bank would supervise to ensure compliance with these regulations.”
The regulation will also permit commercial banks to offer banking, payment, and settlement services exclusively for registered VASPs, subject to the same set of conditions outlined for EPSPs.
Before exchanges are permitted to offer trading services in Ghana, they must also register with the BOG and go through sandbox testing. Up until August 31, the bank is accepting suggestions from professionals, members of the public, and members of the industry.
“The bank will consider these inputs in determining the next steps forward,” the proposal read.
Nigerian government freezes $37M crypto assets of alleged #EndBadGovernance protest organisers
Meanwhile, TheRadar earlier reported that through its anti-graft agency, the Economic and Financial Crimes Commission (EFCC), the Nigerian government has reportedly frozen over $37 million worth of crypto assets traced to the organisers of the recently concluded #EndBadGovernance protest. This is per a Premium Times report.
On August 9, 2024, Justice Emeka Nwite of the federal high court sitting in Abuja ordered the accounts frozen based on the EFCC's application.
The EFCC had brought the application on August 8, in which the anti-graft agency described the crypto assets as proceeds of terrorism financing and money laundering.
