The African country of Ghana has officially brought the digital asset market into the legal framework with a new regulation that legalizes cryptocurrency trading. The “Virtual Asset Service Providers Act,” passed by the country’s parliament, creates a comprehensive regulatory framework for crypto activities that have long remained in a grey area.
Under the new law, individuals and entities wishing to operate in the digital asset 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 activity.
Bank of England Governor Johnson Asiama said the aim of the regulation 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, stating that the main goal of the regulation is to manage risks and protect investors. According to local sources, approximately $3 billion worth of cryptocurrency transactions took place in Ghana between July 2023 and June 2024. It is estimated that about 17 percent of the adult population in the country uses cryptocurrencies.
The Ghanaian government plans to prioritize blockchain-based solutions in payments, trade finance, currency 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 highlighted the importance of innovation, stating that priority would be given to solutions that reduce costs, increase access, strengthen compliance, and improve risk management. The new law is seen as a significant step for Ghana towards becoming one of the leading countries in Africa in terms of cryptocurrency regulation.
*This is not investment advice.