Bank of Ghana Proposes New Virtual Asset Regulations!

In Brief:

The Bank of Ghana has released draft regulations to establish a framework for the cryptocurrency industry, focusing on consumer protection and financial inclusion.

Virtual asset service providers must register and meet strict standards, while commercial banks are barred from direct dealings with virtual asset businesses.

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Bank of Ghana Proposes New Virtual Asset Regulations

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The Bank of Ghana has unveiled draft regulations to create a framework for the cryptocurrency industry, aiming to protect consumers and encourage financial inclusion.

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Released on August 16, these rules require virtual asset service providers (VASPs) to register and adhere to strict standards, while commercial banks are prohibited from directly engaging with virtual asset businesses.

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Surge in Digital Asset Use Underscores Need for Regulation

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Ghana's increasing digital asset adoption, driven by internet access and the rise of VASPs, prompted the central bank to propose these regulations.

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The draft rules focus on overseeing cryptocurrency exchanges and VASPs, requiring them to report suspicious transactions and meet capital requirements.

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Commercial banks can only provide services to registered VASPs. Before finalizing, the Bank of Ghana will conduct sandbox testing and seek public feedback until August 31.