Introduction to New Regulations on Virtual Assets in Ghana
Ghana’s central financial authority is set to introduce new regulations concerning virtual assets as part of a broader initiative to nurture safe and innovative cryptocurrency practices while ensuring equitable competition among all financial entities.
Current Status of Virtual Asset Regulation
Currently, the Bank of Ghana (BOG) has recognized the absence of a specific legal infrastructure governing virtual asset service providers (VASPs). Its position on these asset classes is characterized as neutral, indicating neither a blatant opposition nor an unequivocally supportive stance. The BOG has indicated that significant changes, such as the 2019 amendments to the Financial Action Task Force (FATF) standards, necessitate that virtual assets must now be incorporated within regulatory oversight.
Policy Framework Announcement
On November 5th, the BOG made public its policy framework aiming to stimulate responsible growth in the virtual asset market while ensuring fairness for both long-standing institutions and emerging players in the financial arena. This initiative follows previous communications from the central bank on its intentions to issue licenses to VASPs carrying out operations within Ghana.
In July, the government disclosed plans to draft legislation that would lay the groundwork for regulating these service providers, a move anticipated to yield additional revenue streams for the national treasury.
Risk-Based Regulatory Measures
The policy document emphasizes that regulatory measures should correspond to the risks associated with virtual asset activities. This entails an evaluation of each virtual asset use case from a risk-oriented viewpoint since not every activity poses the same potential threat or systemic consequences. Identified key risks include:
- Effects on monetary policy
- The stability of the financial system
- The integrity of the marketplace
The BOG’s guidelines also advocate for continuous cooperation between various regulatory bodies to enhance cohesive policy formulation and oversight.
Consumer Education and Awareness
Finally, the BOG underscored the importance of elevating awareness and understanding surrounding virtual assets. It stressed the necessity for improved consumer education to foster safer and well-informed engagement with digital financial services and products.
