- Key Provisions of the Draft
- Collaboration with External Stakeholders
- Cryptocurrency Regulation in Europe
The Bank of Ghana has taken significant steps towards regulating the country’s growing digital asset market by releasing a draft of guidelines to manage cryptocurrencies.
Key Provisions of the Draft
On August 16, the Bank of Ghana released a draft of guidelines to oversee the cryptocurrency space, including Bitcoin and stablecoins like Tether (USDT), following an extensive internal review. Citing data from the past three years that shows a substantial rise in cryptocurrency adoption across Ghana, the proposed regulations aim to mitigate risks associated with money laundering, terrorism financing, and fraud, while also enhancing consumer protection.
Collaboration with External Stakeholders
Under the proposed regulations, cryptocurrency exchanges must register with the Bank of Ghana and complete sandbox testing before offering trading services in the country. Additionally, they will be required to monitor and report suspicious transactions, adhering to the Financial Action Task Force’s (FATF) Travel Rule. The bank plans to collaborate with external stakeholders, including commercial banks and international regulators. In a statement, the central bank noted: "The Bank will also partner with the Securities and Exchange Commission (SEC) to establish complementary regulatory frameworks that address the diverse applications and use cases of digital assets."
Cryptocurrency Regulation in Europe
Meanwhile, in Europe, the European Fund and Asset Management Association (EFAMA) has ruled out a rapid expansion of the region’s regulatory framework for financial assets—Undertakings for Collective Investment in Transferable Securities (UCITS)—to include cryptocurrencies. Following a recent review, EFAMA determined that broadening UCITS to cover new asset classes, including cryptocurrencies, was unlikely in the near future. This conclusion comes despite initial hopes raised by the European Securities and Markets Authority’s (ESMA) May 2024 review.
The Bank of Ghana is soliciting feedback from industry participants, experts, and the general public until August 31. Subsequent actions will be decided based on these suggestions.
