Ghana’s SEC sets up committee on crypto regulations

The Ghanaian Securities and Exchange Commission (SEC) has announced its intention to develop regulations for cryptocurrency.

In pursuit of this goal, the SEC has initiated a task force to assist in building expertise and understanding of cryptocurrency. 

The details 

• The commission’s director-general, Daniel Ogbamey-Tetteh, announced this development at the Ghana capital market’s 2023 conference, which also doubled as its 25th anniversary. 
• According to Ogbamey-Tetteh, the commission is keeping in line with directives from the International Organization of Securities Commissions (IOSCO), to which Ghana’s SEC is a signatory. 
• He said that the international organization for securities regulators in countries around the world encouraged its members to stay on top of crypto assets to protect investors. 
• Ogbamey-Tetteh added that the SEC formed the task force to help it develop the capacity to regulate crypto assets. 
• He did not reveal the identities of the task force members, nor did he give a specific scope of the work they have been tasked to do. 

Key quote 

• He said: 

“We are in the era of digital assets – and taking a cue from IOSCO who are encouraging its members to incorporate frameworks in their respective regulations to oversee the activities of digital/crypto assets in order to minimize potential harm to investors, we have commissioned a task force to assist the Commission acquire requisite capacity in that space.” 

Why this matters 

• Due to the novelty of the technology, regulators have often been accused of lacking a proper understanding of digital assets. 
• In addition, a lack of comprehension of the nature of asset class has been named a barrier to formulating effective regulations. 
• While many African countries are working on drafting regulations for digital assets, others, such as Kenya, have gone down the taxation route, introducing heavy and stifling taxes. 
• Kenya only moved for proper regulations after these taxes had come into effect.  
• Last month, the Kenyan parliament tasked the Blockchain Association of Kenya (BAK) with developing a draft bill regulating digital assets. 
• Ghana’s SEC implied that the task force it has set up was to help it understand the crypto space and prepare itself for regulations. 

Zoom out 

• Cryptocurrencies are banned in Ghana. Earlier this year, Ghanaian authorities reiterated this position, stating that the country’s financial institutions are instructed not to engage in crypto-related transactions. 
• South Africa remains the only African country to have provided regulatory clarity around digital assets. The country added crypto companies to a list of accountable institutions and mandated licensing for exchanges.