We Can’t Stop Cryptocurrency Use

The Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, has declared a pragmatic shift in the nation’s approach to cryptocurrencies, stating unequivocally that the central bank cannot stop their use.

Speaking at a Graphic Business/Stanbic Bank Breakfast Meeting on Tuesday, Dr. Asiama emphasised the need for a collaborative regulatory framework to manage the burgeoning digital asset space, rather than attempting to outright ban it.

“Crypto is a big thing in Ghana. We can pretend to look the other way, but the reality is that it’s impacting,” Dr. Asiama stated.

His comments reflect a growing recognition within Ghana’s financial regulatory circles that cryptocurrencies, despite their volatility and associated risks, have become an undeniable part of the global and local financial landscape.

For years, the Bank of Ghana maintained a cautious stance, issuing public notices (such as on January 22, 2018, and March 9, 2022) that cryptocurrencies were not legal tender in Ghana and were not regulated under any domestic law.

Commercial banks and licensed financial institutions were explicitly prohibited from facilitating crypto transactions. This created a regulatory vacuum where crypto activities continued largely in the shadows, unmonitored and without formal consumer protections.

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However, Dr. Asiama’s recent pronouncements signal a significant policy shift.

“As a regulator, and together with other regulators such as the Securities and Exchange Commission (SEC), GRA [Ghana Revenue Authority] and others, we are joining efforts to engage in regulating that activity and to ensure that the benefits accrue to us while minimising the risks,” he elaborated.

He likened cryptocurrency to a ubiquitous force, stating, “A friend of mine said, ‘crypto is like the air we breathe.’ You can’t stop it. It goes everywhere. It takes place everywhere, and so all you have to do is to develop the systems to be able to minimise the risks and allow these to play out.”

The BoG’s shift towards regulation is not entirely new but represents an acceleration of previously hinted-at intentions.

In August 2024, the Bank of Ghana issued draft regulatory guidelines on digital assets, proposing measures such as mandatory registration for Virtual Asset Service Providers (VASPs), anti-money laundering (AML) compliance obligations, and strict internal control systems.

These guidelines acknowledged the innovative potential of digital assets in areas like cross-border payments, remittances, and crowdfunding, while also highlighting risks such as money laundering, terrorism financing, fraud, and consumer protection issues.

More recently, at the African Leaders and Partners Forum 2025 in Washington, D.C., Dr. Asiama announced the central bank’s intention to commence full regulation of virtual assets by the end of September 2025, contingent on the passage of a Virtual Asset Service Providers (VASP) Act.

This proposed legislation would empower the BoG to license and supervise entities operating in the digital asset space and facilitate joint oversight with the SEC.

To support this, the Bank of Ghana plans to establish a specialised unit dedicated to the supervision and regulation of digital assets.

This move aligns Ghana with a growing trend among African nations. Countries like Nigeria and South Africa have already made significant strides in crypto regulation, with South Africa having licensed over 240 crypto firms since making its own regulatory framework.

The push for regulation is partly driven by international pressure, particularly from the Financial Action Task Force (FATF), which requires member states to implement anti-money laundering and counter-terrorist financing measures for VASPs to avoid being grey-listed and maintain credibility with global financial institutions.

Regulating cryptocurrencies presents a unique set of challenges, especially for developing economies.

The decentralised and often anonymous nature of virtual assets can complicate oversight, raising concerns about illicit financial flows, including money laundering and terrorist financing. Consumer protection is another significant hurdle, given the high volatility of crypto markets and the prevalence of scams.

While Ghana has also been exploring the development of its own Central Bank Digital Currency (CBDC), the “eCedi,” which is currently in its pilot phase, Dr. Asiama’s latest remarks underscore that the focus is now equally on embracing and regulating existing private cryptocurrencies.

The coming months will be crucial as Ghana prepares to roll out its comprehensive VASP law, aiming to strike a balance between harnessing the innovative potential of digital assets and safeguarding its financial system.

Despite these challenges, a well-designed regulatory framework offers substantial benefits. It can:

Foster Innovation: Provide legal certainty for fintech companies and investors to build blockchain-based tools and explore new forms of value transfer.
Enhance Financial Inclusion: Potentially support more efficient payment systems and remittances, which are crucial for economies like Ghana, where remittances play a significant role (contributing over $4.5 billion in 2023, according to World Bank data).
Mitigate Risks: Bring previously informal and unmonitored activities into a regulated environment, thereby reducing exposure to fraud, cyber theft, and financial instability.
Improve International Standing: Ensure compliance with global financial standards and prevent Ghana from being perceived as a high-risk jurisdiction.

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