Ghana's central bank is aiming to have cryptocurrency regulations in place by the end of the year, with the West African country submitting a bill to parliament just a week after Kenya passed its own bill regulating the industry.
Johnson Asiama, Governor of the Bank of Ghana, said at the International Monetary Fund meetings in Washington on Thursday that the country had “done a lot of work in the last four months to prepare the regulatory environment” and enact legislation.
“This bill is on its way to Parliament and we hope that before the end of December we will be able to regulate cryptocurrencies in Ghana,” he said.
Earlier this month, Kenya's Virtual Asset Service Providers (VASP) Bill was approved through the country's parliament on October 7, creating a licensing, consumer protection and framework for exchanges, brokers, wallet operators and token issuers.
Cryptographic laws are only the first step
Previously, the Bank of England set a September deadline for cryptocurrency regulations. The bank also released draft guidelines in August 2024, while seeking additional public comments.
Asiama said regulations are only the first part of the process, because “the ability to monitor” cryptocurrency flows “will be key.”
“So, we are developing expertise, developing the workforce. We are working to create a new department that will help us. It is an important area. We can no longer ignore it, and we are trying hard to be able to organize that.”
The Bank of England initially adopted a cautious stance towards cryptocurrencies, warning the public that they were not legal tender and advising people to use central bank-backed funds.
The demand for cryptocurrencies in Ghana is increasing
Even without regulation, 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 cryptocurrencies in some form.
Asiama said the increased use meant they “couldn't let it go”, they had to step up their efforts to regulate the industry, and “as policy makers, what we need to do is try to get some control to prevent abuse of the system”.
As part of the Bank of England's ongoing efforts, it is also operating a digital sandbox, allowing a select number of companies to experiment with cryptocurrencies.
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Regulate crypto or risk being left behind
“The digital train has left the station,” and Ghana needs to move forward with regulation or risk being left behind, Isaac Simpson, senior head of financial advisory and capital markets at Stanbic Bank Ghana, said in July.
“Nigeria, Kenya, South Africa, and Rwanda are already miles ahead — experimenting with central bank digital currencies, launching regulated cryptocurrency exchanges, issuing digital asset licenses, and attracting global crypto capital,” he said. “Ghana has a choice: lead or disrupt.”
“Inaction is politics. Currently, our inaction is costing us lost tax revenues, exposure to illicit capital flows, stifling innovation, and an unregulated, youth-led digital economy beyond state control.”
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