Ghana: Bank of Ghana opened consultation on draft guidelines on digital assets

On 16 August 2024, the Bank of Ghana (BoG) opened a public consultation on its draft guidelines on digital assets, inviting feedback until 31 August 2024. The guidelines outline proposed regulatory measures in response to the growing use of digital assets, driven by high mobile money penetration, internet access, and a tech-savvy youth population. While digital assets offer opportunities in payments, remittances, and investment, the Bank highlights risks such as money laundering, fraud, and cybersecurity threats. The guidelines align with international standards from bodies like the Financial Stability Board and FATF. Currently, banks and payment service providers in Ghana remain prohibited from facilitating crypto transactions, pending formal regulation. The Bank’s approach aims to balance innovation with financial stability and consumer protection. The proposed framework will regulate Virtual Asset Service Providers (VASPs), requiring them to implement anti-money laundering measures, report suspicious transactions, and comply with global best practices. Exchanges and financial institutions interacting with digital assets will also face specific regulatory requirements. The Bank will collaborate with the Securities and Exchange Commission and other authorities to develop a structured regulatory framework. This includes licensing requirements, risk management obligations, and consumer protection measures. Virtual asset providers will need to register and meet capital, governance, and cybersecurity standards. Additionally, the Bank plans to explore blockchain’s potential in financial services and digital inclusion initiatives, such as the eCedi. Public and industry stakeholders are encouraged to provide feedback on the draft guidelines to ensure a balanced and effective regulatory approach.