A Financial Expert and Private Legal Practitioner, Christian Malm-Hesse, has called on the Securities and Exchange Commission, Ghana (SEC) and the Bank of Ghana (BoG) to regulate the crypto currency market in the country and also scale up efforts in dealing with the issue of money doublers in the country.
According to the Legal Practitioner, crypto currency is gradually growing in the country and must be regulated. He also bemoaned the activity of money doublers, a situation he believes threatens the financial sector of the local economy. To this end, he said, “the regulators must up their game in ensuring that this problem is nipped in the bud.”
“Regarding the growing cryptocurrency trade in the country, the Ghana Revenue Authority (GRA) should liaise with the BoG and the SEC to regulate the sector properly. They must enact legislations to control this particular trade properly in order to avert potential fraudulent activities with it.”
Christian Malm-Hesse
Speaking on the issue of money doubling, Mr Malm-Hesse said that “It is becoming a growing canker and if authorities do not act, it will become something else. The enforcers are not doing enough to deal with these people.”
Explaining how the crypto currency works, he noted that cryptocurrency is a digital asset designed to work as a medium of exchange wherein individual coin-ownership records are stored in a ledger existing in a form of computerized database using strong cryptography to secure transaction records to control the creation of additional coins. This, he said, is gaining popularity in the world and the earlier the Bank of Ghana recognizes it and regulate it, the better. He called against the banning of crypto currency in the country, labelling it as a new technological tool that must be embraced.
BoG’s Directive on Such Schemes
Meanwhile, the BoG, notified all media outlets not to allow the broadcast of illegal money doubling and credit card loading schemes on their platforms.
The Central Bank indicated that it is because no entity or individual has been licensed to engage in that business in the country.
“By this notice, the Bank of Ghana informs the general public that the Bank has not licensed any entities or individuals engaged in ‘Money Doubling’, ‘Card Loading’ and ‘Credit Card Loading Systems’. The said individuals and entities in question, commit an offence and will be required to return all funds received.”
BoG
The BoG in the statement, explained that ‘Money Doubling’, ‘Card Loading’ and ‘Credit Card Loading Systems’ amount to deposit-taking, under the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930) and under Section 4 of Act 930, only entities licensed by the Bank may carry out deposit-taking business.
“Members of the public are reminded to place deposits only with institutions licensed by the Bank of Ghana, in order that they may be accorded the protection available under the banking laws.
“The Bank of Ghana wishes to notify all media outlets including radio, television and online channels NOT to permit the advertisement of ‘Money Doubling’ and ‘Card Loading’ or ‘Credit Card Loading Systems’ on their platforms. The media is encouraged to verify the licensing status of such entities with Bank of Ghana, before advertising their products and services. The general public is encouraged not to engage in such activities and to report such illegal activities to the Bank of Ghana.”
BoG
Meanwhile, this call is in the right direction, given the incessant news about innocent people being duped in attempt to double their money.
READ ALSO: Minority Chief Whip Cautions Parliament’s Clerk over “Error” in Records
