tl;dr
Ghana's central bank is racing to finalize crypto regulations by year-end, aiming to keep pace with regional competitors like Kenya and Nigeria while addressing risks from a booming 3 million-user market.
**Ghana Aims to Finalize Crypto Regulations by Year-End Amid Regional Competition**
Ghana’s central bank is accelerating efforts to establish a comprehensive regulatory framework for cryptocurrencies, with Governor Johnson Asiama confirming that a draft bill is set to reach parliament by December. This move comes as West African nations like Kenya and Nigeria intensify their regulatory approaches, pushing Ghana to act swiftly to avoid falling behind in the digital economy.
At the International Monetary Fund’s meetings in Washington, Asiama highlighted that the Bank of Ghana (BoG) has “done a lot of work in the past four months” to develop the regulatory environment. “That bill is on its way to parliament, hopefully before the end of December, we should be able to regulate cryptocurrencies in Ghana,” he stated. This timeline follows Kenya’s passage of its Virtual Asset Service Providers (VASP) bill on October 7, which established licensing requirements and consumer protections for crypto entities.
The BoG had initially set a September deadline for regulations but delayed it to refine guidelines. In August 2024, the bank released draft regulations seeking public feedback. However, Asiama emphasized that legislative action is just the first step. “The ability to monitor crypto flows will be key,” he said, noting the central bank is building expertise and creating a dedicated department to oversee the sector. “We can no longer ignore it,” he added, underscoring the urgency of addressing the growing digital economy.
Ghana’s crypto demand is already significant, with over 3 million users—roughly 8.9% of the population—engaging with digital assets, according to data platform Demandsage. Asiama acknowledged that this surge necessitates regulation to prevent misuse. “As policymakers, we must have some control to prevent abuse of the system,” he said. The BoG is also testing innovations through a digital sandbox, allowing select companies to experiment with crypto solutions.
Analysts warn that inaction could cost Ghana dearly. Isaac Simpson, senior head of financial advisory at Stanbic Bank Ghana, stated in July that the “digital train has left the station,” urging Ghana to regulate or risk being overtaken by peers like Kenya, Nigeria, and South Africa. These countries are already piloting central bank digital currencies (CBDCs), launching regulated crypto exchanges, and attracting global capital.
“Nigeria, Kenya, South Africa, and Rwanda are already miles ahead,” Simpson said. “Ghana’s inaction is costing us—loss of tax revenue, exposure to illicit flows, stifled innovation, and an unregulated youth-led economy outside state control.”
As Ghana inches closer to finalizing its regulations, the move reflects a broader shift across Africa toward balancing innovation with oversight. With regional competitors advancing rapidly, the BoG’s efforts could determine whether the country becomes a leader or a laggard in the digital finance landscape.