Ghana’s parliament has approved the legalization of cryptocurrency, marking a significant step toward regulating the fast-growing digital asset market in the country.
The move addresses concerns raised by the Bank of Ghana over the widespread, unregulated use of virtual currencies.
The central bank is seeking to enhance transparency and oversight in the crypto sector following reports that nearly 3 million Ghanaians—about 17% of the adult population—are involved in cryptocurrency transactions.
The passage of the Virtual Asset Service Providers Bill will pave the way for licensing crypto platforms and supervising their activities, Bank of Ghana Governor Johnson Asiama announced over the weekend in Accra.
He said this trend has direct implications for the management of the cedi, Ghana’s official currency.
Asiama emphasized that the new law will ensure that “emerging activity is brought within clear, accountable, and well-governed boundaries.”
Governor Asiama added that regulatory oversight will “lower costs for banks, improve customer experience, support small and medium-sized enterprises and traders.”
By formalizing the sector, the Bank of Ghana hopes to balance innovation with financial stability, while creating a safer environment for investors and businesses engaging in digital assets.
Crypto transactions in Ghana reached $3 billion in the year through June 2024, according to estimates by Web3 Africa Group, an Accra-based company planning to establish crypto exchanges across the continent.
In comparison, Nigeria recorded $59 billion in crypto trades during the same period, accounting for nearly half of sub-Saharan Africa’s total volume of $125 billion.
In October, the Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, had said that Nigeria witnessed cryptocurrency transactions exceeding $50 billion between July 2023 and June 2024.
With an exchange rate of N1,500 to the Dollar, the amount translates into N75 trillion, about two-thirds of the capitalization of the Nigerian equities market capitalization of N98.8 trillion as of Friday, October 24.
Speaking at the annual conference of the Chartered Institute of Stockbrokers, Agama said the sheer volume of digital asset activity underscores both the financial sophistication and risk appetite of Nigerian investors — a demographic the traditional capital market has failed to attract.
Despite this vibrant crypto engagement, the SEC boss lamented that fewer than four per cent of Nigeria’s adult population actively invests in the country’s capital market.
While less than three million Nigerians are registered market participants, he noted, over 60 million citizens engage daily in gambling, wagering an estimated $5.5 million every day.