Ghana is accelerating the completion of its cryptocurrency legal framework, with a draft law being prepared and expected to be presented to Parliament before the end of December.
The Bank of Ghana insists the law is just the first step: it needs digital currency monitoring capacity, dedicated staff and a new department to manage it effectively, as demand for cryptocurrencies in Ghana grows rapidly.
- The Bank of Ghana has completed the draft framework in four months and is expected to present it to Parliament before the end of December.
- The law is just the beginning: the BoG will build up monitoring capacity, human resources and specialized departments.
- Demand is soaring: over 3 million users, sandbox for testing, while Kenya passed the VASP law on October 7.
What is Ghana doing to enact a cryptocurrency regulatory framework before the end of the year?
Governor Johnson Asiama said Ghana has been working hard for four months to perfect the legal environment and the law will be presented to Parliament, hoping to regulate cryptocurrencies before the end of December (source: IMF meeting speech, YouTube).
The Bank of Ghana had previously set a September deadline and released draft guidelines for public comment in August 2024. The move to accelerate the process reflects a shift from a cautious to a proactive approach, aimed at ensuring timely risk management and creating a framework for digital innovation.
Being “ahead” with a legal framework helps the market clearly define the responsibilities of exchanges, brokers, custodian wallets and Token Issuance, limiting loopholes in user protection.
Why is law just the first step in the management process?
BoG emphasized that the ability to monitor new digital currency flows is a decisive factor in management effectiveness, due to the cross-border and fast-changing nature of the cryptocurrency market.
In practice, many countries must combine laws, supervisory infrastructure, and interagency cooperation to detect abuse, money laundering, and fraud. Ghana has chosen to build internal capacity in parallel with legislative improvements to reduce policy lag as markets develop.
“So we are developing expertise, developing people. We are creating a new department to support it. This is an important area. We cannot continue to ignore it, and we are working very hard to be able to manage this area.”
– Johnson Asiama, Governor of the Bank of Ghana, speaking at the IMF meetings in Washington, 2024, source: YouTube
How cautious was the Bank of Ghana when it came to cryptocurrencies?
Previously, the BoG recommended that the public not consider cryptocurrencies as legal tender and prefer to use central bank-backed money (source: BoG, 2019 guidance).
The prudent approach reflects the priority of financial stability. However, as usage has increased, the BoG has shifted to a proactive risk management framework that combines regulation, supervision and controlled testing to balance innovation and systemic safety.
How is the demand for cryptocurrency growing in Ghana?
According to Demandsage, more than 3 million people in Ghana, or about 8.9% of the population of 34 million, are using cryptocurrencies in some form (source: Demandsage, 2024).
This popularity creates regulatory pressure, as a market with a large user base cannot be left alone without investor protection. The BoG asserts that the Vai of policy is to establish appropriate levels of control to avoid abuse and systemic risk, while not stifling innovation.
How is BoG's Digital Sandbox supporting business experimentation?
BoG operates a sandbox environment for selected businesses to test cryptocurrency-related solutions within a controlled environment.
This approach allows regulators to collect empirical data, assess risks, and refine regulations before scaling up. For businesses, sandboxes offer an opportunity to access early policy feedback, reduce initial compliance costs, and increase commercialization potential.
What has Kenya just passed and why does it create competitive pressure?
On October 7, the Kenyan parliament passed the Digital Asset Service Provider (VASP) Bill, which establishes a licensing mechanism, consumer protection, and operating framework for exchanges, brokers, custodian wallets, and Token Issuance.
This move puts Ghana under pressure to catch up with the region. When countries complete their regulatory frameworks early, they have an advantage in attracting global Capital , quality businesses and talent, while reducing the risk of fraud through transparent licensing and oversight processes.
Ghana risks falling behind if it delays in issuing regulations?
Opinions from the financial community say Ghana needs to act quickly or risk missing out on Capital flows and innovation, especially as its neighbors move quickly with CBDCs, regulated exchanges and digital asset licenses.
Isaac Simpson, head of financial advisory and equity Capital markets at Stanbic Bank Ghana, warns of the need to move forward with the regulatory framework to keep up with the region (source: Stanbic Bank Ghana, July 2024).
“Inaction is also a policy. And right now, inaction is leaving us vulnerable to tax evasion, illicit Capital flows, stifled innovation, and a youth-led digital economy that is outside the control of the state.”
– Isaac Simpson, Senior Head of Financial Advisory & ECM, Stanbic Bank Ghana, July 2024, source: Stanbic Bank Ghana
Next Roadmap: Timeline and Implementation Priorities
The BoG aims to be able to regulate cryptocurrencies before the end of December, after the bill is introduced to the National Assembly and continues to receive comments.
Short-term priorities include finalizing technical guidance, VASP licensing procedures, consumer protection standards, and anti-money laundering and counter-terrorism financing frameworks. In parallel, the BoG will build supervisory capacity, dedicated staff, and enhance sandbox testing to reduce risks in large-scale deployment.
Frequently Asked Questions
When does Ghana expect a cryptocurrency regulatory framework?
The BoG expects to be able to regulate cryptocurrencies before the end of December, after presenting the bill to the National Assembly and completing public consultation (source: BoG Governor's speech at the IMF meeting, YouTube).
What did Kenya pass on October 7?
Kenyan Parliament passes VASP Bill, setting out licensing, consumer protection and operating framework for exchanges, brokers, custodians, and Token Issuance.
Why does BoG say the law is just the first step?
Because of the need for digital currency monitoring capabilities, specialized personnel and dedicated departments for effective risk management, according to Governor Johnson Asiama.
How many cryptocurrency users are there in Ghana?
An estimated 3 million users, or about 8.9% of the population, according to Demandsage (2024).
What benefits does BoG's Sandbox bring?
Sandboxes enable controlled experimentation, helping regulators assess risks and refine regulations, while businesses receive early policy feedback and reduce compliance costs.
