Banks and other regulated financial institutions have been instructed by the Bank of Ghana (BoG) to immediately stop providing Ghanaian users with unauthorised foreign currency wallet services provided by cryptocurrency platforms.
The central bank expressed concern over the increasing use of fiat currency wallet arrangements, especially those denominated in US dollars, that are run by specific cryptocurrency platforms and financed by bank transfers, credit cards, and other payment methods offered by regulated financial institutions.
The Payment Systems and Services Act, 2019 (Act 987), the Foreign Exchange Act, 2006 (Act 723), and other relevant regulatory frameworks may require regulatory permission for such arrangements, according to the Bank of Ghana.
The authority emphasised that the crypto platforms in question are not permitted to engage in such activities in Ghana.
According to a statement from the BoG, “Banks, Specialised Deposit-Taking Institutions, Electronic Money Issuers, Payment Service Providers, and other Regulated Financial Institutions are hereby directed to refrain from establishing or maintaining arrangements that facilitate the funding, operation, settlement, or customer access to unauthorised fiat currency wallet services offered to users in Ghana.”
Additionally, the directive mandates that organisations that presently offer banking, payment processing, card acquisition, settlement, or associated support services to these platforms take prompt action to end those agreements.
Financial institutions may be subject to enforcement or supervisory proceedings if they disregard the instruction.
Source: newsthemegh.com