The Bank of Ghana (BoG) has warned the public about the impending launch of a cryptocurrency investment scheme named “SIDICOIN” in Ghana.
The Central Bank says neither the cryptocurrency investment scheme nor its promoters have any approval from the Bank of Ghana to operate in the banking and payment services sector.
The Bank of Ghana also underscores the fact that cryptocurrency investment schemes like the “SIDICOIN” are not regulated under any law in Ghana.
The Chronicle is glad that the Central Bank has issued this new notice, which is advising the general public to exercise caution with regards to trading in cryptocurrencies and other unregulated investment schemes.
We would like to reiterate the call by the BoG on all regulated institutions, including banks, specialised deposit-taking institutions, dedicated electronic money issuers, and payment service providers to desist from facilitating cryptocurrency transactions and unlicensed investment schemes through their platforms or agent outlets.
We have taken this position because Ghana’s financial sector has experienced a lot of Ponzi schemes and revocation of licences of insolvent savings and loans companies, finance house companies, microfinance and banking institutions between 2015 and 2019.
The Chronicle recalls that in 2015, DKM Diamond Microfinance Company Limited, Little Drops Financial Services, God is Love Fun Club, Jaster Motors and Investment Limited and Care for Humanity Fun Club, which were located in most parts of the Bono, Bono East, Upper West and Upper East regions of Ghana were involved in Ponzi schemes.
We would like to remind the public that Ponzi schemes are fraudulent investments opportunities that promise high rates of returns with low risks to investors, but fail in the long run.
It is on record that these institutions create investment instruments with high interest returns over a short period of time to attract the unsuspecting public.
Again, these institutions offer interest rates higher than the base rate per annum offered by government securities, which are risk-free.
The Chronicle has observed over the years that these financial services users are normally interested in allowing their assets to work for them, rather than working with their assets which is dangerous.
It is against this background that The Chronicle would like to call on the general public to heed the advice of the Central Bank, and desist from patronising schemes such as SIDICOIN, Freedom Coin and a money-doubling scheme operating in Ghana under the name “BitCash Currency Exchange.”