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Ghana Legalizes Crypto: $3B Transactions Ignite Regulation
22 Dec
Summary
- Ghana's parliament approved cryptocurrency legalization to curb unregulated use.
- Approximately 3 million Ghanaians, or 17% of adults, engage in virtual currency.
- Crypto transactions in Ghana reached $3 billion in the year ending June 2024.
Ghana's parliament has enacted legislation to legalize cryptocurrency, marking a significant step towards regulating its burgeoning and often unregulated use. The newly approved Virtual Asset Service Providers Bill is designed to establish a framework for licensing and supervising crypto platforms within the West African nation.
This regulatory initiative stems from concerns raised by the Bank of Ghana regarding the widespread adoption of virtual currencies. Reports indicate that around 3 million Ghanaians, representing 17% of the adult population, actively participate in the crypto market. This significant engagement has prompted the central bank to enhance transparency and oversight to better manage its monetary policies and the stability of the cedi.
The governor of the Bank of Ghana stated that the new law will bring emerging digital activities into well-governed boundaries. This is expected to reduce costs for financial institutions, improve customer experiences, and bolster support for small and medium-sized enterprises and traders, while fostering a more accountable environment for crypto transactions.
