BoG Governor Confirms No Plans for Cryptocurrency Exchange Amid Regulatory Framework Development
Governor of the Bank of Ghana (BoG), Dr Ernest Addison, has noted that the Central Bank is not looking at establishing a cryptocurrency exchange as it looks to regulating digital assets in the country.
The Governor’s assertion was in response to a question posed by NorvanReports as to whether the Central Bank in its consideration of regulating cryptocurrencies will be looking at only the transactional use of the digital assets or will also look at the possible creation of a Cryptocurrency Exchange for the trading of cryptocurrencies.
“We announced that we are looking at the regulatory framework for the use of cryptocurrencies in this economy, and the details will come out as we get along, but I can assure you that we are not looking at establishing an exchange,” he quipped.
The Central Bank two months ago issued Draft Guidelines on regulation of cryptocurrency and digital assets in general amidst growing market interest.
This saw the BoG move from its previously prohibitive stance on cryptocurrencies to a more accommodative stance to allow financial institutions to engage in digital asset transactions within a controlled, regulated environment.
For years, the BoG has maintained a stringent position, repeatedly directing regulated financial institutions to abstain from facilitating any transactions involving cryptocurrencies or other unregulated digital assets. However, the release of these new guidelines suggests the central bank is now poised to embrace the digital asset economy, albeit with strict oversight.
The seven-page draft document outlines a regulatory framework that addresses the rapid proliferation of digital assets in Ghana, driven by high mobile money penetration, a tech-savvy youth population, and the rise of Virtual Asset Service Providers (VASPs).
The BoG’s guidelines recognize the potential benefits of digital assets in areas such as cross-border payments, remittances, and asset tokenization. Yet, they also underscore the risks associated with these assets, including money laundering, cyber-theft, and consumer protection issues.
In a move indicative of a broader regulatory strategy, the BoG plans to collaborate with other agencies, such as the Securities and Exchange Commission (SEC), to develop a coordinated framework that addresses the multifaceted risks posed by digital assets.
Meanwhile, the SEC, according to its Director-General, Rev. Daniel Ogbarmey Tetteh, is actively working towards a deeper understanding of the sector to develop a comprehensive regulatory framework.
“You can’t regulate what you do not understand,” he noted, underlining the commission’s efforts to educate itself on the intricacies of cryptocurrency and blockchain technologies.
The SEC, he notes, has established an innovation team to engage with virtual asset service providers (VASPs) and other stakeholders, as part of its strategy to build regulatory capacity.
“We’ve been actively engaging with various players in the crypto ecosystem to improve our understanding of how these assets function,” Rev. Tetteh explained.
Additionally, the SEC has also been working closely with the International Organisation of Securities Commissions (IOSCO), which provides guidance on regulating digital assets globally.
