Bank of Ghana Releases Draft Guidelines To Regulate Cryptocurrencies, Asks Public For Recommendations

The Bank of Ghana (BoG) has released draft guidelines to regulate cryptocurrencies (like Bitcoin and Tether) and digital assets.

BoG noted that the regulatory measures in the draft guidelines were crafted to “foster innovation while effectively managing risks associated with digital assets.”

This marks a shifting stance in the Ghanaian government’s approach to digital assets and cryptocurrencies. The central bank had proscribed regulated financial institutions from engaging in transactions that involve cryptocurrencies and trading of unregulated digital assets. Despite BoG’s restrictions, Ghanaians, youths especially, have increasingly continued to trade cryptocurrencies outside the mainstream banks.

In the draft guidelines, Ghana’s central bank welcomed suggestions from industry stakeholders and the public concerning the draft guidelines.

“Kindly, therefore, send responses and or/ recommendations regarding the proposed measures to the Bank of Ghana by or before August 31, 2024,” said BoG in a seven-page document titled “Draft Guidelines on Digital Assets.”

While the draft guidelines show BoG’s willingness to spread its arms to cryptocurrencies, the central bank remains vigilant about the risks of welcoming crypto.

“While acknowledging the innovative and beneficial applications of digital assets in cross-border payments, charitable donations, crowdfunding, international remittances, as well as the economic opportunities presented by asset tokenisation, the Bank remains vigilant in addressing potential drawbacks,” the document said.

“These include risks related to money laundering and terrorism financing (ML/TF), fraud, cyber-theft, capital flows and consumer protection concerns.”

Nevertheless, BoG noted that the prohibition of banks from involving in crypto asset transactions remains effective until formal regulatory guidelines are published.

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