Ghana’s central financial institution has printed draft pointers for Digital Asset Service Suppliers.
In response to the Financial institution of Ghana’s Aug. 16 draft, the nation has witnessed a spike in demand for cryptocurrencies, prompting the necessity for laws to counter the varied dangers sometimes related to the rising asset class.
Ghana, like different South African nations, has confronted financial challenges, pushing residents in direction of various belongings comparable to Bitcoin (BTC) as a defend in opposition to inflation. As detailed by the financial institution, the expansion has been spurred by a tech-savvy inhabitants, widespread web entry, and the rise of VASPs.
The central financial institution proposed a number of key measures to control the sector, together with stringent registration necessities, enhanced reporting obligations, and compliance with international requirements.
Per the draft legislation, VASPs might be required to stick to anti-money laundering and counter-terrorism financing laws and report suspicious transactions to the Monetary Intelligence Centre. The entities would even be mandated to conduct common threat assessments and adjust to the FATF’s Journey Rule, which requires reporting transaction particulars.
When signed into legislation, VASPs must register with the Financial institution of Ghana or the Securities and Alternate Fee, relying on the providing. To supply providers, such entities should “demonstrate a satisfactory internal control and risk management framework” alongside capital and solvency necessities. VASPs that don’t register inside the specified timeframe could be deemed unlawful.
Earlier than absolutely implementing these laws, the BoG plans to collaborate with different regulatory our bodies to conduct a “sandbox testing process” with a managed group of VASPs.
In the meantime, monetary establishments and business banks would solely be allowed to course of transactions for registered VASPs underneath particular circumstances. The corporations wouldn’t be allowed to work together straight with digital belongings or present custody providers.
The draft laws are presently open for public suggestions till Aug. 31, 2024, after which they are going to be reviewed and probably finalized.
The Financial institution of Ghana can be growing its central financial institution digital foreign money, the eCedi. To supply the bottom infrastructure for the venture, it has partnered with Giesecke+Devrient, a German banknote and securities printing firm.
