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Ghana Regulator Labels Crypto Transactions Illegal— Urges People to ‘Stay Away From Them’

Ghana Regulator Labels Crypto Transactions Illegal— Urges People to ‘Stay Away From Them’

The Bank of Ghana has taken a strong stance against cryptocurrencies, labeling them illegal and urging citizens to “stay away from them.” According to local news outlet Capital FM, the bank’s Deputy Governor, Ibrahim Mohammed, has claimed that the bank does not consider cryptocurrencies to be legal tender. Ghana’s central bank isn’t the only one to issue such warnings. Recently, the Bank of Uganda issued a similar statement, and last year in South Africa the central bank issued a cautionary note to its citizens to “exercise extreme caution” when using cryptocurrencies. Is it too late to buy into Bitcoin?

The Ghana Financial Service Authority (FSA) has warned the public about the risks involved with trading cryptocurrencies, stating that they are not legal in Ghana. The regulatory body also issued a stern warning to banks in the country, telling them to not deal in any form of cryptocurrency.

Ghana Regulator Labels Crypto Transactions Illegal— Urges People to ‘Stay Away From Them’

Ghana’s Securities and Exchange Commission (SEC) recently warned residents of the West African country to avoid trading cryptocurrencies in any form. In a warning, the regulator reiterated that cryptocurrencies are illegal in the country and not regulated by the commission, so Ghanaians should stay away from them.

Crypto currency risk

In his interview, Paul Ababio, Deputy CEO (SEC), says that there are risks associated with cryptocurrencies and people have lost money in such transactions. Despite this warning, Ababio hints that his organization may eventually decide to regulate the cryptocurrency space.

The Bank of Ghana does not consider it as a means of payment, it is not legal tender, but we will continue to work on developing the framework.

However, until that happens, the regulator is asking Ghanaians not to participate (in cryptocurrency transactions).

Paul Ababio, Deputy Director-General (SEC) of Ghana.

Ghana Regulator Labels Crypto Transactions Illegal— Urges People to ‘Stay Away From Them’

Master plan

At the same time, Mr Ababio said that, as part of its master plan, the Commission was setting up a round table on financial technology to look at some of these innovations and how to deal with them. However, he warns that this work is not yet finished.

Some African countries are leading the way when it comes to global adoption of crypto assets. Along with countries like Nigeria and South Africa, Ghana is one of the leading countries in Africa where the volume of peer-to-peer trading of cryptocurrencies is increasing.

This practice has drawn the attention of the Ghanaian government and the SEC has seen reports of citizens losing their money. An SEC official also took the time to explain why the regulator is scrutinizing cryptocurrencies. He said:

In nature, the risks are obvious. People have lost their keys and can’t access their money, so we’re looking at that problem.

Although Mr Ababio promised to take steps in this direction, he did not give a specific timetable for the Commission to take a final decision on the matter.

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Bank of Ghana, crypto alarm, cryptocurrency transactions, deputy CEO, fintech, Ghana, Securities and Exchange Commission of Ghana, legal tender, Paul Ababio, regulation, SEC

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