Ghana Ends Crypto ‘Gray Zone’ With Passage of Virtual Asset Providers Bill

Ghana’s parliament approved the legalization of cryptocurrency, a move to address central bank concerns about the widening and unregulated use of the alternative asset in the West African country.

Passage of the Virtual Asset Service Providers Bill will facilitate the licensing of crypto platforms and supervising activity, Bank of Ghana Governor Johnson Asiama said at the weekend in the capital, Accra.

The central bank is seeking to improve crypto transparency and regulation following reports that about 3 million Ghanaians, or 17% of the adult population, deal in the virtual currency. That has implications for management of the cedi, the official currency.

The law will ensure that “emerging activity is brought within clear, accountable, and well-governed boundaries,” Asiama said. Regulatory oversight will “lower costs for banks, improve customer experience, support small and medium-sized enterprises and traders.”