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Ghana Prepares to Regulate Crypto Platforms to Foster Web3 Growth
Ghana is taking decisive steps to regulate the burgeoning cryptocurrency industry within its borders. In response to an increasing number of citizens and businesses adopting crypto for transactions, the Bank of Ghana has announced plans to introduce a comprehensive licensing framework for digital asset platforms. This regulatory move is aimed at bolstering revenue streams, providing clarity for investors, and positioning Ghana as a strategic player in the evolving world of blockchain and web3 technologies.
Draft Legislation Set for Parliament Review
In a recent interview with Bloomberg, Johnson Asiama, Governor of the Bank of Ghana, revealed that the nation’s central bank is finalizing a legal framework that will be submitted to parliament by September this year. The upcoming law is designed to streamline oversight of cryptocurrencies, ensure compliance with international standards, and create a safe environment for users and blockchain startups alike.
Asiama emphasized Ghana’s need to catch up, stating, “We are actually late in the game, and it has implications for the local currency.” With a growing segment of the population already using digital currencies for trade and payments, the government recognizes the urgency of implementing robust crypto regulations.
Crypto’s Impact on the Ghanaian Economy
Ghana’s local currency, the cedi, has experienced a dramatic turnaround, increasing by 48% in the past year after recovering from a previous 25% dip, according to Bloomberg data. This economic rebound coincides with the rising use of digital assets across the country. Many local enterprises are leveraging cryptocurrencies to facilitate payments and cross-border trade, yet the absence of formal oversight has made it difficult to quantify the true scope of crypto adoption.
Recent figures from the Web3 African Group indicate that between July 2023 and June 2024, Ghana recorded $3 billion in cryptocurrency transactions. While significant, these volumes are still overshadowed by leading African markets such as Nigeria, which saw $59 billion during the same period. The push for clear regulations is expected to fuel greater growth and integration within Ghana’s financial landscape.
Learning from Africa’s Regulatory Pioneers
South Africa Leads in Official Crypto Licensing
South Africa stands as Africa’s frontrunner, being the first and only nation on the continent with a formal licensing regime for crypto asset service providers. The country’s Financial Sector Conduct Authority (FSCA) announced that, as of December 2024, 248 crypto service providers were licensed under the Financial Advisory and Intermediary Services Act, with 56 more applications pending review.
Ghana’s forthcoming regulatory framework signals its ambition to join the ranks of Africa’s crypto innovators by fostering a secure, transparent, and investor-friendly environment. As the digital asset economy matures, Ghana’s proactive measures may unlock new avenues for economic growth, investment, and blockchain-driven innovation.
Source: crypto
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