Ghana Charts Regulatory Path for Digital Assets and Prepares for eCedi Launch

Ghana is preparing to take a groundbreaking step in Africa’s digital finance landscape, as the Bank of Ghana (BoG) gears up to begin regulating virtual asset service providers (VASPs) in September 2025. Governor Dr. Johnson Asiama made the announcement during the African Leaders and Partners Forum held at the IMF–World Bank Spring Meetings in Washington, stating that once the Virtual Asset Providers Act is passed by parliament, the central bank will formally oversee digital asset activities in the country. The legislation will introduce a comprehensive framework including licensing rules and cybersecurity standards, signaling a transition from informal adoption to institutional governance.

Over the last five years, digital asset usage in Ghana has evolved organically, largely fueled by widespread mobile money adoption and peer-to-peer trading. While traditional banks in the country have struggled with infrastructure limitations, tech-savvy entrepreneurs and consumers adapted quickly to mobile wallets, laying the foundation for broader crypto engagement. A CoinGecko report from November 2024 revealed that roughly 3.1 million Ghanaians, or about 17 percent of the national population, now own digital assets. This places Ghana fourth in Africa for crypto activity, trailing only Nigeria, South Africa, and Kenya.

Across the continent, crypto uptake reflects local economic pressures and remittance patterns. Nigeria remains the continental leader, processing over $400 million monthly in peer-to-peer crypto transactions, driven by foreign exchange controls and a high demand for dollar-pegged stablecoins. Kenya has integrated crypto ramps into its renowned M-Pesa ecosystem, enabling smooth conversion between fiat and tokens. Meanwhile, South Africa offers advanced trading platforms tailored to institutional players and is actively testing tokenized securities within regulatory sandboxes.

Globally, the crypto market has matured considerably since the volatility peaks of 2020. Institutional players have entered the space in droves, with top asset managers launching spot investment products for Bitcoin and Ethereum. Decentralized finance (DeFi) platforms now manage tens of billions in smart contracts, facilitating lending, derivatives, and market-making. Nevertheless, centralized exchanges still command the majority of on-chain transaction volume, and stablecoins now feature in nearly 60 percent of all trading pairs.

In Africa, however, the ecosystem remains at an early stage. Challenges such as low liquidity, friction in onboarding, and limited fiat on-ramps hinder greater institutional involvement. Despite these barriers, demand continues to grow, especially among younger demographics seeking hedges against inflation and alternatives for sending money across borders. Surveys indicate that approximately 70 percent of African crypto users are involved in remittance transactions, illustrating the sector’s potential for advancing financial inclusion.

In the absence of regulation, however, the risks are mounting. Consumers are exposed to significant threats: unlicensed exchanges may vanish without warning, locking users out of their funds, while market manipulation and artificial trading distort prices and erode trust. Fraud also looms large. Novice users are frequent targets of phishing attacks, and "rug pulls" on decentralized platforms have resulted in millions in losses. According to data from 2023, global crypto scams exceeded $3.5 billion, with African users increasingly affected.

Furthermore, money laundering and terrorist financing risks persist due to the anonymity of many transactions. Criminal syndicates exploit peer-to-peer channels to move illicit funds through complex layering schemes. The Financial Action Task Force (FATF) estimates that between 1 to 2 percent of all global crypto volume involves illegal activity. The threat extends to the broader financial system as well, as dramatic market swings can trigger cascading liquidations and systemic risk. The collapse of major crypto firms in 2022 illustrated how intertwined and fragile these markets can become.

Cybersecurity remains another significant concern. Over the past five years, breaches of centralized exchanges and DeFi protocols have resulted in more than $10 billion in losses. Common vulnerabilities include weak key-management practices and unpatched smart contract bugs. In Ghana’s local context, over-the-counter (OTC) trading desks and peer groups operate without oversight. Transaction disputes often go unresolved, and many VASPs lack essential safeguards like capital reserves and disaster recovery plans. According to Dr. Asiama and other officials, it is vital to implement preventive measures before the market matures further.

The upcoming Virtual Asset Providers Act addresses these concerns directly. It mandates that all VASPs must secure a license from the Bank of Ghana, subject to due diligence checks, capital adequacy requirements, and cybersecurity audits. Standardized disclosures will inform consumers about the risks associated with digital asset investments, including volatility, lock-up periods, and fees. The law also enforces strict anti-money laundering and counter-terrorism financing protocols. VASPs will need to implement know-your-customer (KYC) procedures, monitor transactions, and adhere to the FATF’s Travel Rule by disclosing sender and receiver data for transfers exceeding a designated threshold. The framework also introduces mandatory cyber-resilience measures, such as penetration testing and incident response planning, while requiring smart contract platforms to undergo third-party code reviews.

In a coordinated move, the Securities and Exchange Commission will work alongside BoG to regulate custodial services and tokenized securities. This dual oversight ensures investor protection standards remain consistent across both traditional and digital financial instruments. Once the Act becomes law, the BoG will launch a specialized digital asset unit composed of fintech experts, legal advisors, cybersecurity professionals, and blockchain researchers. This team will oversee licensing, compliance checks, and international law enforcement coordination. Educational campaigns are also planned to equip local developers with secure coding and governance knowledge.

Simultaneously, Ghana is advancing its central bank digital currency, the eCedi. A BoG statement from February 2025 confirmed that a pilot rollout will begin later this year, pending final legislation that establishes a legal foundation for a sovereign digital currency. The eCedi aims to digitize payments and promote inclusive finance. It will be accessible via low-cost digital wallets on basic mobile phones, reducing reliance on banks. The currency will also include programmable features to facilitate targeted stimulus and limit cross-border capital flight. Interoperability will be central, allowing seamless conversion between the eCedi, fiat currency, and privately issued tokens.

Governor Asiama emphasized, “Africa’s future must be digital—but inclusive. Ghana’s eCedi pilot reflects our ambition to build not only innovative payment systems, but public infrastructure that expands access and safeguards monetary sovereignty.”

By regulating private digital assets alongside introducing a central bank digital currency, Ghana positions itself as a continental leader in digital financial integration. This regulatory clarity paves the way for institutional investors and global custodians to participate in the Ghanaian market, unlocking liquidity and enabling tokenized investment products. With fintech hubs emerging in Accra and Kumasi, legal certainty is expected to attract new talent and venture capital.

Partnerships with academic institutions will play a vital role in developing blockchain research capabilities and training compliance professionals. Clear regulations also reduce exposure for banks that choose to collaborate with licensed VASPs, encouraging deeper integration with the traditional financial sector. BoG’s digital asset unit will work closely with Interpol, the FATF, and regional financial task forces to enhance cross-border investigative efforts, freeze suspicious accounts, and prosecute illicit actors. These efforts reflect the central bank’s broader commitment to aligning with international regulatory norms.

Ghana’s adoption of digital asset regulation in September 2025 signals a transformative chapter in its financial development. With the passage of the Virtual Asset Providers Act, the establishment of a dedicated supervisory unit, and the pilot of the eCedi, the country seeks to balance technological innovation with financial stability and public trust. By implementing robust licensing rules, consumer safeguards, and cybersecurity protocols, Ghana is poised to manage the risks of crypto volatility, fraud, and systemic disruption. At the same time, it is creating an environment conducive to institutional investment, cross-border cooperation, and the long-term growth of its digital economy.

By fLEXI tEAM