tl;dr
Ghana is developing a regulatory framework for its growing digital asset sector, focusing on licensing Virtual Asset Service Providers and taxation. The Bank of Ghana plans to present this policy to parliament by August's end, aiming to boost economic growth, improve cross-border payments, and enhan...
Ghana is crafting a new regulatory framework for its burgeoning digital asset sector amid a surge in adoption, particularly in cross-border transfers and speculative trading. The Bank of Ghana is poised to present this policy proposal to parliament by the end of August, introducing licensing for Virtual Asset Service Providers (VASPs) and taxation measures. Governor Johnson Asiama emphasized that this framework aims to harness digital assets to drive economic growth, enhance cross-border payments, and improve financial data collection, while also facilitating investment opportunities for local companies.
In 2024, African blockchain startups raised $123 million, with their share of venture capital deals climbing to 13%, outpacing sectors like finance and tech. Asiama acknowledged that Ghana is somewhat behind other nations, noting millions of citizens are already active in digital asset markets. Currently, this activity remains outside formal financial recording, risking economic instability. He pointed to Nigeria’s experience, where digital assets contributed to a sharp decline in the naira's value and prompted government crackdowns, including lawsuits against major exchanges.
Unlike Nigeria, Ghana’s cedi has appreciated nearly 50% over the past year, marking the best performance globally. Approximately 3 million Ghanaians, or 17% of the adult population, own digital assets, a higher adoption rate than countries like the U.S. and Japan. Transactions among Ghanaians surpassed $3 billion in the year ending June 2024. Kwame Oppong, head of fintech and innovation at the Bank of Ghana, highlighted the objective to implement safeguards and regulatory rails to manage the sector responsibly.
Ghana’s regulatory efforts align with broader trends across Africa, where countries like Kenya are advancing digital asset legislation, and Nigeria recently formalized legal recognition of digital currencies, drawing international interest. This wave of regulation reflects a growing recognition of digital assets’ potential economic impact and the necessity to balance innovation with oversight.