Ghana's central bank has conducted a review on the growing use of crypto. It has submitted a draft on how to regulate VASPs. The bank sought feedback from the public and the crypto industry.
Issued by the Central Bank of Ghana, a West African nation of 30 million people Draft guidelines For digital assets after an extensive review of the growing popularity of crypto, as well as engagement with various stakeholders.
Over the past three years, the bank said, crypto usage by Ghanaians has increased amid a tech-savvy youth population, high internet usage and the rise of online companies offering crypto services known as Virtual Asset Service Providers (VASPs).
While acknowledging the beneficial applications of crypto, the bank said it remains vigilant in addressing risks.
It intends to regulate VASPs in defined services for money laundering and terrorism financing, consumer protection and any other measures it deems appropriate. VASPs are required to conduct customer due diligence and transaction monitoring and report to the Financial Intelligence Centre.
In addition, the central bank collaborates with the Securities and Exchange Commission to develop complementary regulatory frameworks for various applications or use cases of crypto.
Once the regulatory framework is established, all VASPs operating in Ghana will need to apply for authorization from the Bank of Ghana or the SEC depending on their specific product offerings.
Commercial banks are permitted to provide banking, payment and settlement services for registered VASPs.
The guidelines are intended to provide the bank with proposed regulatory measures and have sought feedback from industry and the public by August 31, according to the draft, which includes an email address for registering such views.