Ghana’s central bank proposes new cryptocurrency regulations

The Bank of Ghana has introduced draft regulations to establish a secure framework for the cryptocurrency sector. The proposed rules aim to enhance financial inclusion while safeguarding consumers against financial crimes. Virtual asset service providers (VASPs) will need to register with authorities and adhere to strict guidelines. Commercial banks are prohibited from directly engaging with virtual asset businesses.

Ghana’s increasing digital asset usage, driven by widespread internet access, has prompted the need for regulation. The central bank’s analysis highlighted the role of cryptocurrencies like Bitcoin and USDT in cross-border payments and remittances. The regulations are designed to address money laundering, fraud, and cybersecurity risks, aligning with international standards.

The proposed regulations will primarily oversee cryptocurrency exchanges and VASPs. These entities must register with either the Bank of Ghana or the Ghanaian Securities and Exchange Commission. They are also required to meet capital requirements and implement risk management frameworks. Financial institutions can only provide services to registered VASPs, with direct dealings with virtual asset businesses strictly prohibited.

Before the regulations are finalised, the Bank of Ghana plans to conduct sandbox testing to refine the rules. The public has been invited to submit feedback on the proposed regulations until the end of August.