Ghana's Central Bank Issues Draft Guidelines to Regulate Virtual Asset Service Providers Amid Rising Crypto Use

The central bank of Ghana has released a draft of new guidelines to regulate Virtual Asset Service Providers, or VASPs. This move comes as a response to the growing use of cryptocurrency in the country.

Ghana, with a population of around 30 million, has seen a significant rise in crypto use over the past three years. Why? Well, a tech-savvy youth population, high internet access, and the rise of online platforms offering crypto services have all played a role.

The central bank recognizes the potential benefits of cryptocurrencies. However, it also emphasizes the need to address the risks. The proposed regulations will focus on preventing money laundering and terrorism financing. Additionally, they aim to ensure consumer protection and implement any other necessary measures.

VASPs will need to conduct customer due diligence and monitor transactions. They will also be required to report any suspicious activities to the Financial Intelligence Centre.

Moreover, the central bank plans to collaborate with the Securities and Exchange Commission to develop regulatory frameworks for different crypto applications. Once these regulations are in place, all VASPs operating in Ghana will need to obtain authorization from either the Bank of Ghana or the SEC, depending on their specific services.

Commercial banks will be allowed to provide banking, payment, and settlement services to registered VASPs. The central bank is looking for feedback from the public and the crypto industry on these proposed measures. They’ve set a deadline for comments by August 31. An email address is provided in the draft for those who wish to share their thoughts.