SEC Move Ahead with Regulation of Virtual Assets Service Providers (VASPs)

Ghana’s Security Exchange Commission (SEC) has begun endorsing plans to regulate the crypto industry in order to minimise investors’ financial loss risk and combat money laundering. 

The SEC moved ahead with their efforts in Ghana to regulate virtual asset service providers and protect investors from losing money in fictitious crypto schemes. The SEC Director General of Ghana, Daniel Ogbamey-Tetteh, made this commitment at the 25th regulator’s anniversary, which was held at the Ghana Capital Market Conference. He stressed that the SEC will enhance the crypto operator’s trust in the country by creating a transparent and efficient market to grow their business. This will boost the asset owners’ confidence by indicating the stability in the country’s capital market. The Director stated, “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 minimise potential harm to investors, we have commissioned a task force to assist the Commission acquire requisite capacity in that space.” 

These steps come to regulate the cryptocurrency under international regulatory standards and secure the integrity of the global economy. Government bodies need to manage the significant crypto assets and decentralised virtual assets under the regulations. However, these developments are not helping the global economy to secure the financial industry from illicit cash flows. Last month, FTX’s founder was arrested for stealing US $8 billion from customers through investment fraud. Tetteh stated, “we are investing in developing the human capital of SEC as well as implementing a digitalisation programme. We have started implementing a Risk-Based Supervision framework as we seek to migrate from the compliance-based supervision mode.”

However, from all the gloom in digital assets sectors, countries are developing regulations to operate the crypto industry. Namibia’s parliament passed a bill in June to legalise and issue licence virtual asset service providers. Further, Singapore also enhanced the regulation to operate the crypto industry to retain the largest virtual asset trading country. Kenya has also taken significant measures to control virtual assets. To strengthen oversight of the country’s projected $20 billion cryptocurrency sector, parliament requested last month that the Blockchain Association of Kenya (BAK) develop the initial version that would become the Virtual Asset Service Provider’s bill, or the “Crypto bill.” The nation already levies taxes on cryptocurrency assets.

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