By Ernest Bako WUBONTO
Stakeholders in the digital asset industry have signaled their readiness to transition into a formal regulatory framework as the Virtual Asset Service Providers (VASP) Bill, 2025, moves toward its final stage of enactment.
Following the presidential assent to the bill passed by parliament this December, a milestone that will officially usher Ghana into a regulated era for cryptocurrency and digital assets is set to take off.
Market players, speaking at the WEB3 Accra (W3A) VASPs Ecosystem Mixer summit held at the Pelican Hotel, Accra, expressed a unified front in supporting the new legislation as they anticipate continuous engagement and collaboration from regulators.
Key industry players and association leaders believe that formal oversight will sanitise the sector’s operations, boost public confidence, and allow Ghana’s crypto ecosystem to grow.
As Ghana positions itself alongside regional leaders like Nigeria and South Africa, where crypto asset ownership rates are 25 percent and 20 percent, respectively, compared to Ghana’s estimated 10-15 percent, the message from the summit was clear: collaboration between regulators, the tax authority, and industry is essential to build a system that is both practical and forward-looking.
The forthcoming VASP Act is poised to become the primary legal framework for the sector, placing Ghana among Africa’s frontrunners in formal crypto regulation.
This new law will pave the way for the structured development of the crypto ecosystem, to be regulated collaboratively by the Bank of Ghana (BoG) and the Securities and Exchange Commission (SEC), with the Ghana Revenue Authority (GRA) as a key player on the revenue and tax collection aspect.
Lead for Virtual Assets Regulation, Bank of Ghana, Dr. Seyram Pearl Kumah, in her remarks, outlined the phased implementation approach, clarifying that regulation will not begin immediately upon the bill’s signing. Instead, a period of approximately two years will be dedicated to allowing regulators and industry players to study, understand, and familiarise themselves with the new framework before licensing commences.
She noted that while the ‘Fiat system’ is already fully regulated, the new act of parliament will provide the necessary guidelines for the concurrently operating ‘crypto system.’
She emphasised that the new act recognises 14 distinct activities, each of which will have specific operational guidelines and licensing requirements.
“The act is the primary document with high rules to guide the VASP sector. It is not the only document we are going to use. The BoG and SEC will also develop guidelines and other instruments for smooth operation. We, the regulators and industry players, would have a learning period of roughly two years to familiarise ourselves with the new rules before full-scale licensing and supervision commence,” she said.
Industry voices at the summit unanimously welcomed the progress, as Ghana has joined the few countries on the continent with a tailored regulatory framework for the crypto system, different from the fiat system.
Protecting the Ecosystem
Legal Counsel for Binance Africa, Larry Cooke, highlighted that enhancing security remains a top priority for global and local players alike.
He explained that the rapid digital expansion of the last five years has made the space a target for scammers, hence regulation is critical for protecting assets and maintaining the sanity of the digital space.
He argued that with the right regulatory ecosystem and a well-informed society, this novel market could be a game-changer, transforming and doubling gross domestic products (GDPs) of nations on the continent.
To support this shift toward a more informed market, Binance has launched a new book titled “ABC of Crypto,” aimed at simplifying complex concepts for the general public.
Mr. Cooke also pointed out that while Ghana is currently a top-four destination for crypto in Africa, improving digital public infrastructure (DPI), including internet penetration, remains a significant challenge for the government to address to ensure equitable access.
Economic Prospects and the Future
The Founder and CEO of the Web3 Africa Group, Del Titus Bawuah, described the current momentum as a significant victory following years of advocacy.
He also argued that the industry could be a massive engine for growth, potentially adding up to a trillion dollars to the continent’s GDP through youth employment and skills development.
“I don’t see why Africa cannot add a trillion dollars in GDP based on the contribution of the crypto industry alone,” he said.
Mr. Bawuah stressed that the focus should remain on building a responsible ecosystem where education and literacy precede commercialisation.
This sentiment was echoed by other experts who urged local innovators to explore the creation of a Ghana Cedi stablecoin as a bridge between digital assets and traditional finance.
He described the engagement as crucial for building a collaborative and responsible ecosystem.
BoG’s Move to Crypto Regulation
The move towards regulation marks a significant evolution from the BoG’s previous cautious stance, where cryptocurrencies were deemed unregulated and without legal tender status. The new VASP Act is expected to bring clarity, monitor transactions, and provide investor recourse, moving the sector from the shadows into a monitored formal economy.
Cryptocurrencies are no longer a fringe phenomenon. They are now part of global finance, with digital tokens, decentralised finance platforms, and blockchain networks reshaping how people invest, move money, and store value.
Across the world, regulators are trying to catch up. Some have embraced crypto innovation while others have clamped down on it. Ghana has remained cautious — until now.
In public notices dated 22 January 2018 and 9 March 2022, the central bank reiterated that cryptocurrencies are not legal tender in Ghana, are not regulated under any domestic law, and are not backed by any form of guarantee.
Commercial banks and other licensed financial institutions were instructed to steer clear. This position created a legal vacuum. Cryptocurrency transactions continued, but they did so in the shadows, unmonitored, informal, and potentially exposed to abuse.
Investors lacked recourse, operators lacked clarity, and financial institutions lacked direction. Yet digital asset activity grew.
In August 2024, the Bank of Ghana issued draft regulatory guidelines aimed at taming the cryptocurrency market.
These guidelines proposed mandatory registration for Virtual Asset Service Providers (VASPs), anti-money laundering (AML) compliance obligations, and strict internal control systems.
The guidelines were intended to protect the financial system, reduce exposure to criminal activity, and introduce some order into a chaotic space.
The post Crypto market ready to embrace regulation, as new bill awaits presidential assent appeared first on The Business & Financial Times.
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