Cryptocurrency Regulation Stimulates Innovation and Attracts Investment, According to Gillian Darko at YellowCard
Ghana Moves Ahead with Cryptocurrency Regulation, Positioning Itself as a Digital Finance Hub in Africa
The Bank of Ghana has announced plans to introduce a legal framework for virtual asset service providers (VASPs), a move that builds on its August 2024 digital assets policy. This development, considered significant and welcome by stakeholders, is scheduled for rollout by September 2025.
Ghana's latest policy stance signals its intention to be at the forefront of the evolution of digital finance regulations in Africa. One of Africa's leading digital asset platforms, Yellow Card, supports this proposed regulation. The long-anticipated regulations will provide operational clarity and reinforce industry credibility for players like Yellow Card.
The key elements of the proposed Virtual Asset Service Providers (VASP) Act in Ghana include mandatory registration and licensing of VASPs, enforcement of consumer protection, implementation of strict anti-money laundering (AML) and know your customer (KYC) regulations, and requirements for minimum capital thresholds and cybersecurity audits.
Specifically, the main features are:
- Mandatory registration and licensing of crypto exchanges, wallet providers, payments companies using digital assets, and other VASPs with the Bank of Ghana by mid-August 2025, leading to a formal licensing regime anticipated in September 2025.
- Consumer protection measures including protections against fraud and enhanced transparency to support market integrity and investor confidence.
- AML and KYC compliance requirements to combat financial crimes such as money laundering and terrorist financing.
- Cybersecurity requirements and regular audits to ensure data privacy and secure handling of users' funds.
- Imposition of minimum capital thresholds, likely around 5 million Ghanaian cedis, to ensure financial stability and operational adequacy of licensed entities.
- Measures supporting financial stability, inflation control, and exchange rate management through regulated payment and digital asset services.
Yellow Card, which operates in 20 African markets and holds licenses in jurisdictions such as South Africa and Botswana, is advocating for a few key elements in the final framework, including clearly defined asset classifications, proportional compliance obligations, mechanisms for continuous stakeholder engagement, regulatory sandboxes, and research incentives.
The implementation of these rules depends on the passage of a Virtual Asset Service Providers Act. A dedicated digital assets unit will be established to enforce the new measures once the regulation is implemented. A defined legal framework is expected to boost investor confidence, encourage responsible business practices, and eliminate bad actors from the ecosystem.
Dr. Asiama, the Governor of the Bank of Ghana, stated that the need to regulate cryptocurrency arises from the fact that it is a technology they cannot prevent. Stablecoins and other digital assets are already being used daily in Ghana for managing currency risk and facilitating cross-border payments.
Stakeholders are optimistic that the new cryptocurrency regulation in Ghana will position the country as a digital finance hub in Africa. If Ghana gets the regulation right, as suggested by Ms. Darko, Director of Yellow Card, the country could become a leader in the African digital asset ecosystem. The regulation creates a level playing field, with companies with strong standards for anti-money laundering (AML), cybersecurity, and consumer protection standing out in a regulated space.
The Bank of Ghana is taking a phased approach starting with registration, followed by issuance of licenses under this Act, which is aligned with global best practices and aims to bring clarity and oversight to Ghana's growing digital asset ecosystem. This regulatory framework is part of Ghana's transition from warnings against crypto use to a structured approach that facilitates innovation while protecting consumers and the financial system.
The regulation is expected to unlock innovation and investment in Ghana's FinTech ecosystem. Ms. Darko stressed the importance of ensuring the regulations are future-proof and inclusive.
- Ghana's proposed Virtual Asset Service Providers Act, which includes mandatory registration, consumer protection measures, AML and KYC compliance, cybersecurity requirements, minimum capital thresholds, and measures supporting financial stability, positions the country as an attractive destination for investing in digital finance and technology.
- With the implementation of a regulatory framework for virtual asset service providers, Ghana aims to foster responsible business practices, boost investor confidence, and encourage innovation in the drive toward becoming a leading digital finance hub within Africa.
