Ghana’s central bank aims to have crypto regulations in place by the end of the year, with the West African country introducing a bill to Parliament just a week after Kenya passed its own bill regulating the industry.
Johnson Asiama, the governor of the Bank of Ghana (BoG), told the International Monetary Fund meetings in Washington on Thursday that the country had “done a lot of work over the last four months to put in place a regulatory environment” and create legislation.
“This bill is on its way to Parliament and hopefully before the end of December we should be able to regulate cryptocurrencies in Ghana,” he said.
Earlier this month, Kenya’s Virtual Asset Service Providers (VASP) Bill was passed by the country’s parliament on October 7, establishing licensing, consumer protections and a framework for exchanges, brokers, wallet operators and token issuers.
Crypto laws are just the first step
Previously, the BoG set a September deadline for crypto regulation. The bank also released draft guidelines in August 2024, while seeking additional public comments.
Asiama said the laws are only the first part of the process, as “the ability to monitor” crypto flows “will be key.”
“That’s why we’re developing the expertise, we’re developing the workforce. We’re setting up a new department that will help us. This is an important area. We can’t ignore it anymore and we’re trying very hard to be able to regulate it.”
The BoG initially took a cautious stance towards cryptocurrencies, warning the public that they were not legal tender and advising people to use central bank-backed money.
Demand for crypto in Ghana is growing
Even without regulations in place, online data and statistics platform Demandsage estimates that more than 3 million people in Ghana, representing about 8.9% of the country’s 34 million population, use crypto in some form.
Asiama said growing usage meant they “can’t leave it” and needed to step in to regulate the industry, and “as policymakers what we need to do is try to have some control in order to prevent abuse of the system.”
As part of BoG’s ongoing efforts, it also operates a digital sandbox environment, allowing a number of companies to experiment with cryptocurrency.
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Regulate crypto or risk falling behind
Isaac Simpson, senior manager of financial advisory and capital markets at Stanbic Bank Ghana, said in July that “the digital train has left the station” and Ghana must move forward with regulation or risk being left behind.
“Nigeria, Kenya, South Africa and Rwanda are already miles ahead: piloting CBDCs, launching regulated crypto exchanges, licensing digital assets and attracting global crypto capital. Ghana has a choice: lead or be disrupted,” he said.
“Inaction is policy. And right now our inaction is costing us dearly: lost tax revenue, exposure to illicit capital flows, stifled innovation, and an unregulated, youth-led digital economy beyond state control.”
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