The Bank of Ghana (BoG) has taken a significant step towards regulating the country’s growing digital asset market. On August 16, the central bank released a draft of guidelines to oversee the cryptocurrency space, including Bitcoin and stablecoins like Tether (USDT), following an extensive internal review.
Citing data from the past three years that shows a substantial rise in cryptocurrency adoption across Ghana, the BoG’s proposed regulations aim to mitigate risks associated with money laundering, terrorism financing, and fraud, while also enhancing consumer protection. The framework consists of eight key pillars, primarily focusing on strengthening the registration and reporting requirements for cryptocurrency exchanges and other virtual asset service providers (VASPs).
Under the proposed regulations, cryptocurrency exchanges must register with the BoG and complete sandbox testing before offering trading services in the country. Additionally, they will be required to monitor and report suspicious transactions, adhering to the Financial Action Task Force’s (FATF) Travel Rule.
The BoG plans to collaborate with external stakeholders, including commercial banks and international regulators. In a statement, the central bank noted,
“The Bank will also partner with the Securities and Exchange Commission (SEC) to establish complementary regulatory frameworks that address the diverse applications and use cases of digital assets.”
The BoG is soliciting feedback from industry participants, experts, and the general public until August 31.
“The bank will take these suggestions into account as it decides on the subsequent actions,”
the draft proposal noted.
Meanwhile, in Europe, the European Fund and Asset Management Association (EFAMA) has ruled out a rapid expansion of the region’s regulatory framework for financial assets—Undertakings for Collective Investment in Transferable Securities (UCITS)—to include cryptocurrencies. Following a recent review, EFAMA determined that broadening UCITS to cover new asset classes, including cryptocurrencies, was unlikely in the near future.
This conclusion comes despite initial hopes raised by the European Securities and Markets Authority’s (ESMA) May 2024 review. However, significant changes to UCITS regulations did not materialize as some had anticipated.
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