The central bank of Ghana is targeting to establish cryptocurrency regulations by the year’s end, following recent legislative progress in Kenya. Just a week after Kenya passed its own regulation bill, Ghana is advancing its own proposal to parliament.
Johnson Asiama, governor of the Bank of Ghana (BoG), stated during the International Monetary Fund’s meetings in Washington on Thursday that significant efforts have been made over the past four months to create a regulatory framework and draft legislation.
“The bill is on its way to parliament; we aim to have the ability to regulate cryptocurrencies in Ghana by December,” he mentioned.
Earlier this month, Kenya’s bill for virtual asset service providers (VASP) was approved by parliament on October 7, laying down licensing requirements, consumer protections, and a structure for exchanges, brokers, wallet operators, and token issuers.
Crypto laws are merely the starting point
Previously, the BoG had set a September deadline for crypto regulations and issued draft guidelines in August 2024 to gather more public input.
Asiama emphasized that the new laws are just the beginning; the capacity for monitoring crypto flows will be crucial.
“Thus, we are building expertise and assembling a dedicated team to address this area effectively. We can no longer overlook it, and we are making earnest efforts to regulate it.”
The BoG initially took a cautious approach to cryptocurrencies, cautioning the public that they are not considered legal tender while advising the use of central bank-backed money.
Increasing demand for crypto in Ghana
Despite the absence of regulations, the online data platform Demandsage estimates that over 3 million individuals in Ghana—approximately 8.9% of the nation’s 34 million population—are utilizing cryptocurrencies in some capacity.
Asiama noted that the rising adoption meant they could not ignore it any longer and had to enhance regulations, asserting, “Our duty as policymakers is to establish some control to prevent system abuse.”
As part of BoG’s initiatives, it is also operating a digital sandbox environment, allowing a limited number of companies to explore cryptocurrency opportunities.
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Regulate crypto or clash with progress
In July, Isaac Simpson, senior head of financial advisory and equity capital markets at Stanbic Bank Ghana, warned that “the digital train has already left the station,” urging Ghana to advance with regulations to avoid being left behind.
“Countries like Nigeria, Kenya, South Africa, and Rwanda have already made significant strides—testing CBDCs, launching regulated crypto exchanges, issuing licenses for digital assets, and drawing in global crypto investments. Ghana faces a dilemma: to lead or to be disrupted,” he remarked.
“Inaction serves as a policy choice. Currently, our lack of action is costing us in lost tax revenue, vulnerability to illicit cash flows, stifled innovation, and an unregulated, youth-led digital economy beyond state oversight.”
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