SEC Working to Develop Comprehensive Regulatory Framework for Cryptocurrency, Says Rev. Daniel Ogbarmey Tetteh
The Securities and Exchange Commission (SEC) of Ghana is maintaining a cautious but open-minded stance on the regulation of cryptocurrency, according to its Director, Rev. Daniel Ogbarmey Tetteh. In an appearance on Joy News’ PM Express Business Edition, Rev. Tetteh reiterated that while cryptocurrencies remain unregulated in Ghana, the SEC is actively working towards a deeper understanding of the sector to develop a comprehensive regulatory framework.
“We issued a caution statement to the market that crypto assets are not regulated by the SEC, and if you dabble in it, you are basically on your own,” said Rev. Tetteh, reaffirming the commission’s 2019 position. He stressed that the SEC has consistently taken a measured approach, acknowledging the complexities of regulating a rapidly evolving and highly volatile asset class.
“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 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. The SEC has also been working closely with the International Organisation of Securities Commissions (IOSCO), which provides guidance on regulating digital assets globally.
However, some industry participants have expressed frustration at the perceived slow pace of progress. Ghana’s crypto community, like many around the world, has been eager for regulatory clarity as digital assets become increasingly mainstream. Yet, Rev. Tetteh defended the SEC’s deliberate pace, noting that careful consideration is paramount in ensuring the effectiveness of future regulations.
“Getting it right is better than getting it fast,” he stated, adding that the SEC’s approach is in line with global regulatory practices. He emphasized that regulators around the world are grappling with the challenge of crafting rules for an asset class that continues to evolve rapidly, and that Ghana’s regulatory response must be comprehensive, covering all potential risks and benefits.
The SEC’s cautious approach mirrors that of many regulatory bodies worldwide, which have been reluctant to rush into developing rules for a nascent and unpredictable market. The collapse of high-profile cryptocurrency exchanges and the volatility of digital currencies have only reinforced the need for a robust regulatory framework that protects investors without stifling innovation.
Rev. Tetteh acknowledged that there are risks in delaying regulation but maintained that the SEC’s focus is on ensuring that any framework adopted in Ghana is both adaptable and effective in the long term. “We are on course, and we want to ensure that we have a framework that covers all angles,” he said.
For now, Ghanaian cryptocurrency traders and investors will have to continue navigating the market at their own risk. While the SEC has not yet formalized regulations, its clear intention to create a balanced, well-informed framework suggests that the country may eventually join the ranks of jurisdictions that have taken steps to regulate digital assets.
The debate over how and when to regulate crypto assets continues to unfold across the globe, with some countries moving swiftly to introduce legislation, while others, like Ghana, proceed more cautiously. The challenge remains finding the right balance between investor protection and fostering innovation—an equilibrium that the SEC is intent on achieving.
As cryptocurrencies gain further traction in Ghana, the SEC’s efforts to engage with global bodies and domestic stakeholders are likely to play a key role in shaping the future of digital asset regulation in the country.
