110,000 investors in Ghana lost $ 25.7 million in scams and cryptographic hacks
Around 110,000 investors in Ghana lost a total of $ 25.71 million for scams and encryption investment hacks in 2018, lawmakers said.
Ama Pomaa Boateng, the member of the parliament of the city of Juaben in Ghana, initiated a dialogue against the investment epidemic led by cryptography. The 43-year-old public representative, while addressing the Ghanaian parliament, emphasized the need for good cryptography regulation, citing the notorious Global Coin Community scam of 2018 that scammed 109,259 Ghanaians at the rate of GHC134m. The scammers promised the victims a monthly return of 27 percent for a year, but then they escaped with their capital investments based on cryptography.
Added Boateng. “There is a problem oflack of compliance due to the nature of the cryptocurrency and the cryptographic resource because the users are anonymous and it is extremely difficult to collect data on users of digital currency”.
Cryptographic merchants are illegal in Ghana
While the Securities and Exchange Commission of Ghana (SEC) is considering introducing a cryptocurrency law, trade in such assets remains illegal in the country, saidDr. Mark Assibey Yeboah, chairman of the finance committee. The parliamentarian considered that the decentralized nature of cryptocurrencies was a threat to his financial system, adding that regulators would eventually gain firm control over the industry.
Dr Yeboah also informed: “This is a digital platform where money is transferred betweenthe pairs. It is not the verification system where a Central Bank clarifies orcontrols it”.
Parliamentarians in one voice warned the public against investing or making transactions in cryptocurrencies. The warning recalled how the SEC’s Assistant Director General, Paul Abadio, rejected any legal aid for the victims of the GlobalCurrency Community scam.
“When you choose to go there, you are on your own”, he said, adding that they were stilldoing “research and information gathering” on the matter. The Office of Economic and Organized Crime (EOCO) had arrested two directors in connection with the scam. However, the agency released them after approval of their bail application.
Educate the public about Crypto
James Klutse Avedzi, the chairman of the public accounts committee, said that his public account committee authorities still had to learn about the nature of cryptocurrencies and how to deal with them. The delays in the procedure in the Global Coin Community scam pointed to some extent to the fact that Ghana did not have a cryptography law all this time. And because the scammers diverted money from investors in cryptocurrencies, there was the possibility that they would escape through legal cracks.
Avedzi suggested that the government should ask the Bank of Ghana to investigate cryptocurrencies. The legislator added that it would help the Central Bank to draft new policies in the cryptocurrency space. Daniel Okyem Aboagye, another parliamentarian, supported the idea, stating that the government should educate the people of Ghana about cryptocurrencies.
“The discussionis good”, said Aboagye. “He informs and tells the entire nation that lawmakers are concerned about developments in the cryptocurrencyindustry”.
The ecosystem of cryptocurrencies have great potential to offer a revolutionary technology, blockchain-bitcoin has the potential to generate wealth from the work of users, innovation is one of its mainstays, the problem lies in that in this space people They promise unrealistic returns and that’s where the scammers explode, the expectations of investors. One of the strategies is the financial education of the future investors, it is possible to take care of the scams, therefore itis necessary to study and investigate.
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