The Bank of Ghana issued a directive on June 12 ordering regulated financial institutions to immediately halt operations supporting unauthorized foreign currency wallet services offered by cryptocurrency platforms. The central bank stated that several crypto platforms operating in Ghana have been offering digital wallet arrangements denominated in foreign currencies, primarily U.S. dollars, without obtaining required authorization. These platforms have relied on integration with the local banking system through direct bank transfers, payment cards, and other traditional payment channels. The directive targets these arrangements because they violate compliance mandates under the Payment Systems and Services Act of 2019 and the Foreign Exchange Act of 2006, which require formal authorization for financial mechanisms involving foreign-currency-denominated digital wallets.
Bank of Ghana Cites Violations of 2019 and 2006 Financial Legislation
According to the central bank, cryptocurrency platforms operating in Ghana have been offering digital wallet arrangements denominated in foreign currencies without authorization. To keep these services running, the platforms have relied on integration with the local banking system, using payment channels including direct bank transfers, payment cards, and other traditional local payment channels.
In a June 12 notice, the central bank clarified that facilitating foreign-currency-denominated digital wallets involves financial mechanisms that require formal authorization under existing Ghanaian legislation. Specifically, these arrangements trigger compliance mandates under the Payment Systems and Services Act of 2019 and the Foreign Exchange Act of 2006.
The Bank of Ghana stated that because crypto platforms lack these approvals, the infrastructure supporting them is illegal under current banking guidelines.
Directive Applies to Banks and Payment Service Providers
Effective immediately, the directive applies to banks, specialized deposit-taking institutions, electronic money issuers, and payment service providers. They are strictly prohibited from establishing or maintaining any arrangements that facilitate the funding, operation, and settlement of these unauthorized fiat wallet systems.
"Institutions that currently provide any banking, payment, card acquiring, settlement, or related services in support of such arrangements shall take immediate steps to discontinue such support," the central bank stated.
Non-Compliant Institutions Face Immediate Regulatory Action
The Bank of Ghana stated that the order is mandatory. Financial institutions that fail to cut ties with these crypto dollar-wallet providers will face immediate, unspecified supervisory or enforcement actions from the regulator.
For businesses looking to align with national registration guidelines or seeking technical clarity on compliance, the central bank has designated a dedicated inquiry channel through its virtual asset desk.
FAQ
What legislation does the Bank of Ghana cite for halting crypto USD wallets?
The Bank of Ghana cited the Payment Systems and Services Act of 2019 and the Foreign Exchange Act of 2006. According to the central bank, these laws require formal authorization for financial mechanisms involving foreign-currency-denominated digital wallets, which the crypto platforms operating in Ghana have not obtained.
Which institutions are affected by the Bank of Ghana's June 12 directive?
The directive applies to banks, specialized deposit-taking institutions, electronic money issuers, and payment service providers. These institutions are prohibited from establishing or maintaining any arrangements that facilitate the funding, operation, and settlement of unauthorized fiat wallet systems offered by crypto platforms.
How can businesses seek compliance guidance from the Bank of Ghana?
The Bank of Ghana has designated a dedicated inquiry channel through its virtual asset desk. Businesses looking to align with national registration guidelines or seeking technical clarity on compliance can contact the central bank through this channel.
