The government has restated its prohibition on the use of cryptocurrencies in all financial transactions, emphasizing that all financial institutions in the country have received instructions to refrain from engaging in crypto-related activities.
Minister of State at the Finance Ministry, Dr Mohammed Amin Adam, made this announcement while addressing questions on the floor of Parliament.
Cryptocurrencies, such as Bitcoin and Ethereum, are digital or virtual currencies that use cryptography for secure financial transactions, control the creation of additional units, and verify the transfer of assets. They operate on decentralized networks known as blockchains.
“While the government remains open to exploring associated technologies, such as blockchain and distributed innovations, within a controlled framework, we are currently in the process of developing comprehensive guidelines,” stated Dr Adam. “Until such a framework is established, we reiterate our directive as conveyed through various notices, including the one issued on March 9, 2022. This directive explicitly prohibits all institutions licensed by the Bank of Ghana from facilitating cryptocurrency transactions through their platforms or agent outlets.”
In April 2022, the Central Bank issued cautionary directives to banks and other financial entities regarding their involvement in cryptocurrency trading and other unregulated investment schemes.
The objective of these measures is to ensure the regulation and integrity of the digital space concerning cryptocurrency activities, protecting consumers and the financial system from potential risks and fraudulent schemes.
The government aims to create a robust and secure framework that addresses the complexities associated with cryptocurrencies and enables responsible usage in the future.