The Securities and Exchange Commision of Ghana (SEC Ghana) has reportedly cautioned the general public against engaging in cryptocurrency transactions saying it is illegal and not regulated.
According to a local news media, Mr. Paul Ababio, the Deputy Director-General, SEC Ghana, said that the commission is yet to come up with a framework to regulate crypto.
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Speaking to Modern Ghana News, Mr. Ababio said:
“The Commission has given out a warning that it [cryptocurrency] is not regulated by the commission, Bank of Ghana does not treat it as a form of payment, it is not a legal tender but we will be engaging further to come out with frameworks. So, people should desist from participating.”
– Deputy Director-General, SEC Ghana
Despite the warning, the director-general was also quoted as saying the commission is already evaluating risks associated with cryptocurrencies and a fintech roundtable is already in place to look into some of these innovations.
“There are clear risks to the nature of it. People have lost their keys and they can no longer access their funds so it is something that we are studying and this year there will be some action on that front”
– Deputy Director-General, SEC Ghana
Ghana is one of the first markets in the world to digitize trading. This is evidenced by the highest trading volumes ever recorded, and this, in the midst of Covid-19 in 2020.
The country, via SEC Ghana has already developed a master plan policy document that has 4 main key agendas:
- Creating diversity of investment products & enhancing liquidity in the securities market
- Increasing the investor base through investor education and engagement with the public
- Strengthening infrastructure and improving market services
- Improving regulation, enforcement and market confidence
In February 2021, the Central Bank of Ghana (BoG) launched a regulatory and innovation sandbox pilot to test innovative products, services, and business models under the regulator’s supervision and specifically mentioned blockchain technology as one of these key technologies.
A recent report by the Intenational Monetary Fund (IMF) also listed Ghana as one of the 40 countries globally legally allowed to issue a digital currency. Out of the list, only 5 African countries are listed with Ghana being among them with its E-Cedi initiative.
At the same time, Twitter recently announced its first office on the African continent will be based out of Ghana.
All of the above point to Ghana as one of the markets to look out for when it comes to crypto and blockchain adoption in 2021 and beyond.
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RECOMMENDED READING: Only 40 Countries (5 in Africa) are Allowed to Issue Digital Currencies Under Existing Laws, Says The IMF
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