Ghana Proposes Crypto Exchange Regulation Rules to Protect Consumers

• Ghana’s Central Bank has proposed crypto regulation guidelines.
• The guidelines mainly target exchanges.
• Public and industry stakeholders will comment on the proposals throughout August.

On Friday, the Bank of Ghana proposed draft guidelines on digital assets and is looking to solicit feedback from the public and stakeholders regarding the upcoming framework.

This move has been inspired by the heightened adoption of crypto in Ghana over the last three years, which has occurred due to various factors. These include high smartphone penetration and the rising number of online Virtual Asset Service Providers (VASPs), such as exchanges.

Ghana’s Race to Regulate VASPs

According to the official document , Ghana’s Central Bank intends to implement crypto regulation laws targeting risks associated with money laundering, terrorism financing, and other areas that may be deemed “appropriate.”

If approved, the framework will require VASPs, including exchanges, to conduct comprehensive risk assessments and implement a “risk-based” approach in mitigating and reporting financial crime. This requirement extends to compliance with the FATF Travel Rule, which mandates information sharing on originators and beneficiaries of transactions.

“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,” the document reads.

The Central Bank further intends to allow Enhanced Payment Service Providers (EPSPs)to process crypto transactions, exclusively for registered VASPs. However, this group of businesses would be prohibited from holding crypto or running ventures linked to digital asset activities.

Per the document, VASPs would need to apply for authorization from either the Central Bank or SEC to operate in Ghana. Potential registration obligations may include meeting specified minimum capital and insolvency requirements.

Consultations on the proposed regulations will run until August 31, after which the Central Bank will consider the feedback in determining the next steps forward.

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