Because more people want to use cryptocurrencies, the Bank of Ghana has put out written rules for Virtual Asset Service Providers (VASPs). The goal of this move is to deal with the risks that come with a growing asset class.
The draft, which came out on August 16, talks about how rising prices and other problems with the economy have made Ghanaians turn to digital assets like Bitcoin. The rise in cryptocurrency interest is due to the country’s tech-savvy people and easy access to the internet, along with the rise of VASPs.
VASPs Face New Requirements
The suggested guidelines include strict rules for registering, more reporting, and following international standards. The draft says that VASPs must follow rules to stop money laundering and funding for terrorists and tell the Financial Intelligence Centre about any activities that seem fishy. They also have to do risk assessments on a daily basis and follow the FATF’s Travel Rule for reporting transactions.
Based on the services they offer, VASPs will need to sign up with either the Bank of Ghana or the Securities and Exchange Commission. They have to meet standards for internal control, risk management, cash, and solvency in order to run. If you don’t register within the time limit, the VASPs will be illegal.
Before the rules are finalized, the Bank of Ghana wants to work with other regulatory bodies and a small group of VASPs to do a “sandbox testing process.”
Also, financial institutions and commercial banks will only be able to handle deals for registered VASPs under certain circumstances. It will be against the rules to deal directly with virtual assets or custody services.
The written rules can be commented on by anyone until August 31, 2024. After that, they will be looked over again, and they might be made official.
With help from the German company Giesecke+Devrient, the Bank of Ghana is also working on its central bank digital currency, the eCedi.
