As Ghana moves closer to establishing a formal regulatory framework for digital assets, concerns are emerging over a critical structural weakness that could undermine the effectiveness of the entire regime.
Financial and banking expert Dr. Richmond Atuahene has identified what he termed a regulatory dichotomy in the regulatory framework.
He explains that the proposed framework, which assigns oversight responsibilities to multiple regulators, risks creating overlapping mandates, conflicting interpretations, and uncertainty for market participants.
He cites that under the current arrangement, the Bank of Ghana (BoG) and the Securities and Exchange Commission (SEC) are expected to jointly regulate activities involving digital currencies, tokens, and blockchain platforms, while the Financial Intelligence Centre (FIC) is tasked with monitoring anti-money laundering and counter-terrorism financing compliance.
While the multi-agency approach seeks to ensure comprehensive oversight, Dr. Atuahene argues that it may inadvertently create a regulatory maze rather than a clear path for innovation and investor protection.
The Risk of Conflicting Rules
The regulatory dichotomy, he says, is a situation where the same asset or activity is viewed differently by separate regulators.
In practical terms, one regulator may classify a digital token as a security, while another may regard it as a payment instrument or a digital commodity. Such conflicting classifications can expose businesses and investors to uncertainty over which rules apply, which regulator has authority, and what compliance obligations must be met.
He emphasized that this challenge is not an abstract issue. He cited that the United States has grappled with a similar problem for years, with the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) often disagreeing on whether certain crypto assets should be treated as securities or commodities.
The result has been prolonged legal battles, regulatory disputes, and uncertainty that has complicated investment and innovation within the sector.
With this background, Dr. Atuahene fears Ghana risks importing similar complications if regulatory responsibilities are not clearly defined from the outset.
The Possible Impact
The implications could extend beyond regulatory confusion. Some experts believe that for startups, fintech companies, and blockchain innovators, uncertainty over licensing requirements and regulatory expectations could increase compliance costs and discourage investment.
Moreover, entrepreneurs may find themselves dealing with multiple regulators for the same product or service, leading to delays in approvals and increased administrative burdens.
In addition, investors could also become hesitant to commit capital to digital asset ventures if there is uncertainty regarding the legal status of the underlying assets.
A Call for Clear Regulatory Boundaries
To avoid these risks, Dr. Atuahene is advocating for a clearer division of responsibilities among the country’s regulators.
He proposes that the Bank of Ghana should oversee activities relating to payments, digital asset custody, and matters with implications for monetary policy, financial stability, and the integrity of the payment system.
The SEC, on the other hand, should regulate the offering, trading, and investment aspects of virtual assets, while the Financial Intelligence Centre should focus on anti-money laundering and counter-terrorism financing compliance in close coordination with both the BoG and SEC.
Under this structure, the FIC’s enforcement actions would be guided by the regulatory directions of the Bank of Ghana and the SEC, ensuring consistency across the ecosystem.
The Bottomline
For Dr. Atuahene, Ghana’s efforts to regulate digital assets represent an important step toward embracing financial innovation and strengthening consumer protection.
However, he warns that without clearly defined regulatory boundaries, the country could create a system where overlapping mandates generate confusion rather than confidence.
As digital assets continue to gain prominence in the financial sector, the success of Ghana’s regulatory framework may ultimately depend not only on the rules that are enacted, but also on coordination between the rules.
