By Toma Imirhe
Following the announcement by the Bank of Ghana Governor, Dr Johnson Asiama that the central bank will commence regulating the issuance, trading in and use of cryptocurrencies by September this year, the financial services industry and digital currency dealers and users have started warming up for what they see as a new era of financial trading opportunity.
The impending Virtual Assets Service Providers (VASP) Act will grant the BoG authority to license and supervise cryptocurrency exchanges, wallet providers, and other virtual asset services. This aligns Ghana with regional peers like Nigeria, Kenya, and South Africa, which have already introduced crypto regulations.
While the final text of Ghana’s VASP law is pending, details of the impending regulatory framework have begun to be gleaned from official statements.
One relates to licensing and oversight. Under this component the BoG will mandate licensing for all virtual asset service providers, including exchanges, brokers, and wallet operators. Unlicensed entities face severe penalties, mirroring Kenya’s model, where unlicensed operators risk fines up to 20 million shillings (about. US$150,000) or imprisonment. A dedicated Digital Assets Unit within the BoG will oversee compliance, echoing similar structures in Nigeria and South Africa.
Anti-Money Laundering (AML) and consumer safeguards will also be provided under the law. Providers must implement AML/CFT (Combating Financing of Terrorism) measures, including customer due diligence and transaction monitoring, in line with the Financial Action Task Force (FATF) standards. Data protection and cybersecurity protocols will be enforced, requiring adherence to frameworks like Ghana’s Data Protection Act (2012) and Cybersecurity Act (2020).
With regards to financial stability and market integrity, the BoG will emphasize capital adequacy, solvency requirements, and risk management for licensed firms to prevent systemic shocks. Initial Virtual Asset Offerings (IVAs, akin to Initial Capital Offerings) will require regulatory approval to curb fraudulent schemes.
Foreign-owned crypto businesses must cede 30% equity to Ghanaian investors, a rule already applied to fintech firms under existing laws. Licensed entities must maintain a registered office in Ghana, ensuring accountability and easier enforcement
The BoG Governor’s announcement, made in Washington in the United States against the back drop of the Spring meetings of the International Monetary Fund and the World Bank, marks a pivotal shift in the country’s financial regulatory landscape. Over the past seven years the BoG and the Securities and Exchange Commission (SEC) had maintained a cautious stance, issuing warnings about the unregulated nature of digital assets like Bitcoin and Ethereum. In 2018, the BoG explicitly cautioned financial institutions against facilitating crypto transactions, citing volatility and fraud risks. Rather the central bank had focused its efforts on launching its own national digital currency to be known as the e-cedi, in line with similar efforts being pursued by several central banks around the world.
However, the rapid adoption of cryptocurrencies for cross-border payments, remittances, and investments coupled with the rise of virtual asset platforms has necessitated a structured regulatory approach a stance which has been made even more imperative by the strong support for cryptocurrencies expressed by America’s President Donald Trump .
