Ghana will begin licensing and regulating cryptocurrency exchanges by September as part of its strategy to protect the digital assets sector.
The Bank of Ghana (BoG) is finalising a regulatory framework to oversee the growing crypto market, which saw $3 billion in transactions between July 2023 and June 2024.
With 17 percent of Ghana’s adult population already owning or trading cryptocurrencies, this move aims to enhance financial transparency, consumer protection in Ghana and across Africa.
What Ghana citizens should expect
Citizens should expect stricter compliance requirements for crypto platforms, including licensing, anti-money laundering (AML) protocols, and cybersecurity standards.
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Exchanges must maintain minimum capital reserves, secure user funds, and report suspicious transactions.
While this may initially limit some informal trading, the regulations are expected to boost investor confidence, attract global crypto firms, and integrate digital assets into Ghana’s formal financial system.
Before now, Ghana’s journey with digital currencies has been a mix of caution and gradual acceptance.
Initially, the Bank of Ghana and the Securities and Exchange Commission (SEC) warned citizens that cryptocurrencies like Bitcoin were not legal tender and carried risks due to a lack of regulation.
But, as adoption surged, driven by currency volatility, high inflation and demand for cross-border payments, the government shifted its stance.
The rise of mobile money, such as MTN Mobile Money, laid the groundwork for digital finance. As of 2021, there were over 48 million mobile money accounts in the country.
Meanwhile, startups like BitSika facilitated $40 million in crypto-based remittances, proving the utility of decentralised finance (DeFi) in solving real economic challenges.
The BoG also piloted its central bank digital currency (CBDC), the eCedi, signalling a parallel push for state-backed digital money alongside private crypto assets.
How regulation will accelerate crypto adoption in Ghana and beyond
1. Legitimising the crypto market – By licensing exchanges, Ghana is signalling that digital assets are here to stay, reducing fears of sudden crackdowns.
This could encourage more businesses and individuals to adopt crypto for payments, savings, and investments.
2. Boosting cross-border trade— Stablecoins like USDT and USDC are already popular for cheaper remittances than traditional channels, which charge 8 to 9 percent fees.
Regulation will make these transactions safer and more transparent, aiding regional commerce under the African Continental Free Trade Area (AfCFTA).
3. Attracting foreign investment – Clear rules will position Ghana as a West African crypto hub, drawing global exchanges and fintech startups.
Neighbouring countries like Nigeria and South Africa have already taken similar steps, creating a domino effect for broader African adoption.
4. Enhancing financial inclusion – With 60 percent of sub-Saharan Africans unbanked, crypto wallets on mobile phones offer an alternative.
Regulation ensures these platforms are secure and accessible, bridging gaps in rural banking infrastructure.
Moving forward, to regulate the sector effectively, the BoG must:
Implement smart licensing: Ensure exchanges meet capital and AML requirements without stifling innovation. The BoG, the primary financial regulator, and the Securities and Exchange Commission (SEC), for crypto platforms dealing with securities, should enforce licensing standards and maintain a balance between regulation and innovation.
Educate the public: To combat scams, the Bank, through its public awareness programs and the Financial Intelligence Centre (FIC) responsible for AML/CFT outreach, should be charged with leading nationwide crypto education efforts in collaboration with the Ministry of Information, the National Information Technology Agency (NITA) and more media channels.
Monitor cross-border flows: Track crypto transactions to prevent tax evasion and illicit financing, especially amid terrorism concerns in the Sahel region.
Ghana’s official Financial Intelligence Centre (FIC) should be tasked with monitoring suspicious crypto flows.
The Economic and Organised Crime Office (EOCO) and the Bureau of National Investigations (BNI) should also support investigations related to terrorism financing and financial crimes.
Integrate with the eCedi: A dual approach, regulating private crypto while advancing the CBDC, could stabilise the cedi and modernise payments as agencies leading the eCedi pilot, the BoG and the Ghana Interbank Payment and Settlement Systems (GhIPSS), which manages national payment rails, should be charged with ensuring the eCedi’s interoperability with regulated crypto services.
In conclusion, Ghana’s crypto regulation is a pivotal step toward a more inclusive and resilient financial system.
While challenges like enforcement and infrastructure gaps remain, the move aligns with Africa’s broader digital transformation, where countries like Nigeria, Kenya, and South Africa are leading the charge.
For citizens, this means safer crypto transactions, greater economic opportunities, and a stronger position in the global digital economy.