The central bank of Ghana is set to establish cryptocurrency regulations by the year’s end, following the advancement of a bill to parliament just a week after Kenya enacted its own regulatory framework.
At the International Monetary Fund’s meetings in Washington on Thursday, Johnson Asiama, the governor of the Bank of Ghana (BoG), announced that significant progress has been made over the past four months to develop the regulatory framework and legislation.
“The bill is on its way to parliament, and we expect to regulate cryptocurrencies in Ghana before the end of December,” he remarked.
Earlier this month, Kenya’s parliament passed the virtual asset service providers (VASP) bill on October 7, which established licensing, consumer protections, and a framework for exchanges, brokers, wallet operators, and token issuers.
Crypto laws are just the beginning
Previously, BoG had targeted September for crypto regulations. The bank also released draft guidelines in August 2024 and sought additional public feedback.
Asiama emphasized that the regulations are only the initial phase, stressing that “the ability to monitor” crypto transactions “will be crucial.”
“As a result, we are developing expertise and building a new department to support this effort. It’s a vital area that we cannot overlook, and we are diligently working towards effective regulation.”
The BoG had initially taken a conservative approach to cryptocurrencies, advising the public that they are not legal tender and promoting the use of state-backed currency.
Rising demand for crypto in Ghana
Despite the lack of regulations, the online data platform Demandsage estimates that over 3 million individuals in Ghana, or approximately 8.9% of the population of 34 million, engage in cryptocurrency in some capacity.
Asiama stated that the increasing usage necessitated proactive measures to regulate the industry, ensuring “as policymakers, we must work to establish control to mitigate system abuse.”
In addition to regulatory frameworks, the BoG is also operating a digital sandbox, allowing a select group of companies to experiment with cryptocurrency technologies.
Related: Ripple collaborates with Absa to introduce bank-level crypto custody in South Africa
Regulate crypto or risk being left behind
Isaac Simpson, the senior head of financial advisory and equity capital markets at Stanbic Bank Ghana, mentioned in July that “the digital train has left the station,” urging Ghana to implement regulations before it falls behind.
“Countries like Nigeria, Kenya, South Africa, and Rwanda are already ahead — piloting CBDCs, launching regulated crypto exchanges, issuing digital asset licenses, and attracting global crypto investments. Ghana must choose: lead or be disrupted,” he stated.
“Inaction is also a policy choice, and our current inaction is costing us through lost tax revenue, exposure to illicit financial flows, stifled innovation, and an unregulated youth-driven digital economy outside of government oversight.”
Magazine: What unites these 6 global crypto hubs…
