Hybrid Regulation Proposed for Ghana’s Virtual Assets
Ghana’s financial sector regulators, the Bank of Ghana (BoG) and the Securities and Exchange Commission (SEC), are being urged to adopt a hybrid regulatory approach for the burgeoning virtual assets ecosystem. This recommendation, advocating for a blend of principles-based and risk-based frameworks, comes from banking and governance consultant Dr. Richmond Akwasi Atuahene, as Ghana prepares to implement its first comprehensive regulatory regime for cryptocurrencies and digital assets.
Balancing Innovation and Risk
Dr. Atuahene’s policy paper, titled ‘Pathways to the financial regulation of virtual assets (crypto-assets) eco-systems in Ghana: A Case for Hybrid Financial Regulatory Approaches’, suggests that this hybrid model is crucial for navigating the complexities of virtual assets. The proposed approach aims to strike a balance between fostering innovation within the digital asset space and mitigating potential risks. Specifically, it seeks to provide regulatory flexibility while simultaneously ensuring targeted enforcement in areas particularly vulnerable to illicit activities such as money laundering, consumer fraud, and market volatility.
In conclusion, the recommendation for a hybrid regulatory approach underscores the need for a stable and adaptable framework to govern Ghana’s virtual assets ecosystem. By combining principles-based guidance with risk-based enforcement, the BoG and SEC can potentially create an environment that fosters innovation while safeguarding the financial system and protecting consumers from potential harm.
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