Cryptocurrency regulation: BoG, SEC must collaborate closely to align risk assessments – IMF

The International Monetary Fund (IMF) has called on the Bank of Ghana and the Securities and Exchange Commission (SEC) to work closely together and align their risk assessment frameworks and supervisory action plans for the cryptocurrency market. The IMF suggests that this collaboration should extend beyond dual-regulated entities and cover all current and potential cross-sector risks, including monitoring financial stability risks.

In a report titled "Regulation and Supervision of Crypto Markets and Activities," the IMF emphasized the dynamic and innovative nature of the crypto asset market, which necessitates constant collaboration and information exchange between the Bank of Ghana and the SEC to prevent blind spots and regulatory arbitrage opportunities for market participants.

The coordination committee should propose a formal collaboration structure that minimizes the risk of regulatory arbitrage and supervisory blind spots, covering all stages of the supervisory process, from reporting procedures to sanctions alignment.

The IMF specifically recommended developing effective guidance with a clear delineation of responsibilities between the relevant regulatory authorities for dual-supervised entities. To ensure consistent and high-quality reporting data, the IMF urged the Bank of Ghana and the SEC to consider using a single reporting framework for all supervised entities. Using separate reporting frameworks could lead to undue operational complexities, undermine data exchangeability, and create data gaps or double reporting.

If a unified reporting framework is not feasible, the authorities should closely align their reporting templates for crypto markets to enable seamless data exchange while respecting legal permissibility. Ghana is the fifth-largest crypto market in sub-Saharan Africa, with adoption increasing rapidly. Data suggests that 8% to 17% of the population have bought or sold crypto, with estimated annual crypto transactions reaching $21 billion.