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

The International Monetary Fund (IMF) has called for closer collaboration and alignment of risk assessment frameworks between Ghana's Bank of Ghana (BoG) and the Securities and Exchange Commission (SEC) to regulate the cryptocurrency market effectively. The IMF's report, titled "Regulation and Supervision of Crypto Markets and Activities," emphasizes the need for constant communication and information exchange to prevent blind spots and regulatory arbitrage opportunities.

The IMF highlights that the crypto asset market is dynamic and innovative, necessitating ongoing coordination between the BoG and SEC. This coordination should extend to all risk areas, including financial stability risks, and encompass all stages of the supervisory process. This includes aligning reporting procedures, sanctions, and ensuring the consistency and quality of data reporting.

Regarding dual-supervised entities, the IMF recommends that the coordination committee should develop clear guidance outlining responsibilities between the BoG and SEC. The report warns against the use of separate reporting frameworks for these entities, as it may lead to operational complexities, data gaps, and double reporting. Instead, the IMF suggests leveraging existing frameworks like Ghana's eM-Tech system for real-time reporting.

With crypto adoption growing rapidly in Ghana, accounting for 8% to 17% of the population buying or selling cryptocurrencies, the IMF's proposal for tighter collaboration between the BoG and SEC could be crucial in maintaining financial stability and preventing regulatory arbitrage in the evolving crypto market.