A little less than a week after the South African Central Bank released a proposed regulatory framework for crypto companies, reports have emerged that a neighboring African country, Ghana could follow shortly.
Deputy Director General of the Ghana Securities and Exchanges Commission (SEC), Paul Ababio told Prime News Ghana that his agency is currently weighing up a regulatory framework that will allow cryptocurrency to exist as a legal tender.
Additionally, he acknowledged that SEC Ghana plans to introduce licensing requirements for cryptocurrency exchanges because some investors in the country have funds locked up with them.
So, rather than provide an instant solution to investor complaints about the exchanges, the top official warned crypto traders and investors to stay away from the exchanges. According to him, these firms are unlicensed and doing business with them is at the risk of investors.
Ghana May Need External Input To Create Crypto Regulation
To help quicken the creation of the regulatory framework, Ababio said the SEC has adopted a wide range of chances on it and are still doing some research and gathering information.”
More importantly, he left the door open for any external input that could help the agency define a framework on how Ghana will deal with cryptocurrencies. He said,
“We (SEC Ghana) welcome any input that people might have to help us formulate a view on how we should deal with it in Ghana.”
No doubt, the new approach to cryptocurrency regulation by SEC Ghana is a significant improvement to a decision announced early last year by the country’s Central Bank. In January 2018, the Bank of Ghana banned cryptocurrency trading on the basis that no clear regulations are in place for the activity.
The softened stance should see Ghana become one of the first African countries to regulate the burgeoning crypto industry. We revealed in an earlier article that the pace of crypto regulation in Africa is relatively slow with authorities preferring to observe from afar how more prominent nations will handle the industry.