Ghana’s parliament has taken a significant step forward by approving the legalization of cryptocurrency, primarily aimed at addressing the concerns of the central bank regarding the unregulated and increasing use of digital assets within the country. The passage of the Virtual Asset Service Providers bill marks a milestone in establishing a framework for the licensing and regulation of crypto platforms, as noted by Bank of Ghana Governor Johnson Asiama during a recent announcement. Ghana’s New Crypto Legislation The newly enacted bill aims to create a legal structure governing digital assets and the activities of Virtual Asset Service Providers . The effective date of the Act will be announced in the coming days, as the Bank of Ghana and regulators work on the directives and regulatory instruments to operationalize this new framework. Entities and individuals engaged in crypto activities will be required to either register or obtain licenses from the Bank or the country’s Securities and Exchange Commission (SEC), depending on the nature of their operations. According to Governor Asiama, this bill lays the groundwork for regulating participants in the cryptocurrency space. He emphasized that such regulations will help ensure emerging activities are conducted within accountable and well-governed boundaries. These developments promise to lower costs for financial institutions, enhance customer experiences, and support small and medium enterprises, ultimately positioning Ghana’s financial system to be more competitive within the context of the African Continental Free Trade Area (AfCFTA). Looking ahead to 2026, the Bank of Ghana plans to explore additional initiatives, including the development of asset-backed digital settlement instruments, such as gold-backed stablecoins . Africa’s Digital Asset Scene Currently, nearly 3 million Ghanaians, or about 17% of the adult population, are estimated to have participated in digital asset transactions. Reports indicate that crypto transactions in Ghana reached approximately $3 billion from June 2023 to June 2024. In comparison, Nigeria remains Africa’s largest crypto market, despite regulatory challenges. While the Central Bank has imposed restrictions, these measures have not hindered adoption but rather shifted users towards decentralized platforms and regulated fintechs that comply with emerging rules. South Africa, on the other hand, has developed one of the clearest legal frameworks for crypto on the continent, classifying crypto assets as financial products and placing exchanges and service providers under regulatory oversight . This clarity has reportedly attracted institutional interest and facilitated compliance-driven growth. Egypt presents a less favorable landscape, marked by strong demand for digital assets driven by inflation concerns, coupled with strict regulations that limit official approval for transactions. Other African nations involved in cryptocurrency initiatives include Kenya, Tunisia, and Morocco. Featured image from DALL-E, chart from TradingView.com
