The African country of Ghana has officially brought the digital assets market into the legal framework with new regulations that legalize cryptocurrency trading. The “Virtual Asset Service Providers Law,” passed by the country’s parliament, creates a comprehensive regulatory framework for crypto activities that have long remained in a gray area.
Under the new law, individuals and entities wishing to operate in the digital assets sector will be required to register with either the Bank of Ghana (BoG) or the Securities and Exchange Commission, depending on the nature of their business.
Bank of England Governor Johnson Asiama said the aim of the regulations was to create a transparent, accountable and well-governed structure by licensing and regulating the sector.
Asiama also emphasized that with the passage of the law, individuals trading cryptocurrencies will no longer be treated as criminals, saying the main objective of the regulations is to manage risks and protect investors. According to local sources, around $3 billion in cryptocurrency transactions took place in Ghana between July 2023 and June 2024. It is estimated that around 17% of the country’s adult population uses cryptocurrencies.
The Ghanaian government plans to prioritize blockchain-based solutions in the areas of payments, trade finance, foreign exchange settlement and market infrastructure by 2026. As part of this, asset-backed digital payment instruments, such as gold-backed stablecoins, will also be explored.
Central Bank Governor Asiama stressed the importance of innovation, saying priority would be given to solutions that reduce costs, increase access, strengthen compliance and improve risk management. The new law is seen as an important step for Ghana to become one of the leading countries in Africa in terms of regulating cryptocurrencies.
*This does not constitute investment advice.
