Gaining Confidence among Crypto Asset Owners
The Ghanaian Securities and Exchange Commission (SEC) has established a task force to enhance its ability to regulate and oversee crypto assets. In line with the International Organization of Securities Commissions (IOSCO)’s recommendations to protect digital asset consumers, the SEC is taking steps to ensure the safety of crypto users in Ghana.
During the commission’s 25th anniversary event, Daniel Ogbamey-Tetteh, the Director General of the Ghanaian SEC, emphasized the importance of building confidence among crypto asset owners. To achieve this, the SEC is focused on developing its human capital and implementing a digitalization program.
Despite previous warnings from the deputy director general about the lack of regulation in the crypto industry, Ghanaian residents have continued to engage in crypto trading and investment. This has prompted the regulator to take action in order to safeguard the interests of crypto users.
Implementing a Digitalization Program
The SEC is prioritizing the development of its human capital and implementing a digitalization program to effectively regulate the crypto industry. The Director General stated that the commission is transitioning from a compliance-based supervision approach to a risk-based supervision framework.
“We are investing in developing the human capital of SEC as well as implementing a digitalization program. We have started implementing a Risk-Based Supervision framework as we seek to migrate from the compliance-based supervision mode,”
In addition, the SEC is exploring regulatory technology (regtech) and supervisory technology (suptech) solutions to strike a balance between supporting financial innovation and maintaining market integrity and stability.
Hot Take: Ghana SEC Prioritizes Crypto Asset Regulation to Protect Users
The Ghanaian SEC is taking commendable steps to enhance its capacity to regulate and oversee crypto assets. By establishing a task force, investing in human capital, and implementing a digitalization program, the SEC aims to protect the interests of crypto asset owners and build confidence in the industry.
While warnings have been issued regarding the lack of regulation in the crypto space, the increasing participation of Ghanaian residents in crypto trading and investment necessitates stronger measures to safeguard their interests. The SEC’s focus on regulatory technology and risk-based supervision demonstrates its commitment to strike a balance between promoting financial innovation and maintaining a secure market environment.
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