Ghana Takes Major Step in Cryptocurrency Regulation
Ghana has taken a significant step in regulating cryptocurrencies with the adoption of the Virtual Asset Service Providers (VASP) law by its Parliament. This reform officially legitimizes cryptocurrency trading in the country, putting an end to years of legal uncertainty.
"The persons and entities engaging in virtual asset-related activities will be required to obtain a license or register with the Bank of Ghana or the Securities and Exchange Commission (SEC), depending on the type of activity," states the Bank of Ghana.
The Bank of Ghana and the Securities and Exchange Commission (SEC) will oversee the sector, with the Bank of Ghana being the primary authority responsible for issuing licenses and ensuring compliance with prudential standards. In the coming months, the Bank and the SEC will publish guidelines and regulatory instruments to implement the law, provide guidance to applicants, and clarify requirements.
According to the Digital Watch Observatory, this initiative comes amidst a growing adoption trend: over 15% of Ghanaian adults already use cryptocurrencies for transactions and investments. With this legislation, Ghana positions itself among African countries that prioritize regulation over prohibition, seeking to balance technological innovation with financial security.
