Regulatory Alerts2019-03-29
Public Warning on Investment and Trading in Cryptocurrencies and Their Digital Platforms
The Securities and Exchange Commission of Ghana issued this public warning to inform investors that cryptocurrencies and their trading platforms are unregulated and unrecognized as legal tender in the country. The regulator clarified that these activities are not sanctioned by the SEC, meaning investors assume all risks and receive no protection under Ghanaian securities laws. The public is advised to report any entities offering such services to the Commission via its toll-free number or website.
“Ensuring Investor Protection” SECURITIES AND EXCHANGE COMMISSION, GHANA PUBLIC WARNING ON INVESTMENT AND TRADING IN CRYPTOCURRENCIES AND THEIR DIGITAL PLATFORMS. SEC/PN/003/03/2019 The Securities and Exchange Commission (hereinafter referred to as “SEC”) is the statutory body mandated by the Securities Industry Act 2016 (Act 929) to promote the orderly growth and development of an efficient, fair and transparent securities market in which investors and the integrity of the market are protected. The SEC wishes to draw the attention of the general public and investors to a fast growing interest in the issue, investment and trading in crypto currencies. The above-mentioned activities offered by unregistered and unlicensed entities on digital on-line trading platforms with promises of high returns on investment are not sanctioned nor registered by the SEC. Some of the popular ones include Bitcoin, XRP, Lite Coin, Ethereum, Monero, XRP, Tether, Tron, Binance Coin, Neo, IOTA, NEM, Holo, Waves, Ontology, Maker, Tezos, USD Coin, Ripple, Dash, Cardano, Stellar, ZCash, EOS etc. The SEC wishes to inform the general and investing public that none of these Crypto currencies is recognized as currency or legal tender in Ghana. The platform on which they are traded are also not licensed nor regulated by the SEC. The SEC would like to make it clear that it does not currently regulate these types of products offerings and their accompanying on-line trading platforms or Exchanges. Members of the general public who are investing or intend to invest in such currencies or assets may be doing so at their own risk and can in no way be protected under the Securities law regime in Ghana. The general public is hereby advised to report the activities of those offering such Crypto currencies, such like assets, schemes and their trading platforms to the
Securities and Exchange Commission on its Toll free number: 0800-100-065 or main line: 0302768970 – 2. They may also contact us on our website www.sec.gov.gh. This Notice is issued pursuant to section 3 and 208 of the Securities Industry Act, 2016 (Act 929) ISSUED BY ORDER OF THE SECURITIES AND EXCHANGE COMMISSION OF GHANA DATED THE 29th MARCH, 2019