Bank of Ghana Unveils Proposed Virtual Asset Regulations

The Financial institution of Ghana has launched draft rules aimed toward making a framework for the cryptocurrency trade. The principles are meant to guard shoppers, stop monetary crimes and promote monetary inclusion. Digital Asset Service Suppliers (VASPs) must register and meet strict requirements, whereas industrial banks can be prohibited from dealing instantly with digital asset corporations. The general public could have a possibility to supply suggestions on the proposed rules earlier than they turn into remaining.

The rise in using digital property underlines the necessity for regulation

The Financial institution of Ghana (BOG) lately unveiled draft rules to create a regulatory framework for digital property. The principles, launched on August 16, are meant to advertise monetary inclusion whereas defending cryptocurrency customers. The central financial institution’s resolution adopted in depth evaluation of digital property equivalent to bitcoin (BTC) and the USDT stablecoin.

The evaluation reveals that Ghana’s tech-savvy inhabitants is more and more utilizing digital property, pushed by widespread web entry and the rise of Digital Asset Service Suppliers (VASPs). Whereas cryptocurrency utilization stays low in comparison with conventional monetary markets, the BOG has recognized its function in cross-border funds and remittances as a necessity for regulation.

These rules are meant to sort out cash laundering, fraud and cybersecurity threats whereas complying with worldwide requirements.

A report within the Graphic Enterprise says that the rules are primarily targeted on the supervision of cryptocurrency exchanges and VASPs. Underneath the proposed legal guidelines, these entities can be required to register with the central financial institution or the Ghana Securities and Trade Fee (SEC). Exchanges would additionally report suspicious transactions to the Monetary Intelligence Middle.

As well as, VASPs should meet capital necessities and have inside controls and danger administration frameworks. The draft rules make clear that industrial and registered monetary establishments can solely present companies to registered VASPs. No financial institution or monetary establishment can deal instantly with digital property.

Earlier than the rules are finalized, the BoG will conduct a sandbox testing course of to determine potential points or refine the principles. The general public can submit suggestions till August 31, the report mentioned.