BoG Commits to Regulation of Cryptocurrencies Over Prohibition
The Governor of the Bank of Ghana (BoG), Dr. Johnson Pandit Asiama, has declared a decisive shift in the central bank’s approach to cryptocurrencies, affirming that the BoG will pursue regulation rather than prohibition of the fast-evolving digital asset space.
Speaking at the Graphic Business/Stanbic Bank Breakfast Meeting held on Tuesday, July 15, Dr. Asiama acknowledged the growing influence of cryptocurrencies in Ghana’s financial ecosystem, stating that efforts to ban their use were no longer viable.
“Crypto is a big thing in Ghana. We can pretend to look the other way, but the reality is that it’s impacting,” he said, stressing the need for a structured regulatory response.
Dr. Asiama’s remarks represent a marked departure from the BoG’s earlier cautionary stance on virtual assets. In past circulars issued on January 22, 2018, and March 9, 2022, the Bank warned the public that cryptocurrencies were not legal tender and did not fall under any domestic regulatory framework. Banks and other licensed financial institutions were expressly barred from facilitating crypto transactions.
Despite these directives, crypto activities have continued to gain traction, largely outside the formal financial system and without consumer protection safeguards.
Recognising the limitations of this approach, Dr. Asiama now advocates for a coordinated regulatory effort.
“As a regulator, and together with other regulators such as the Securities and Exchange Commission (SEC), GRA [Ghana Revenue Authority], and others, we are joining efforts to engage in regulating that activity and to ensure that the benefits accrue to us while minimising the risks,” he disclosed.
He likened the pervasiveness of cryptocurrencies to a natural force, stating, “A friend of mine said, ‘crypto is like the air we breathe.’ You can’t stop it. It goes everywhere. It takes place everywhere, and so all you have to do is to develop the systems to be able to minimise the risks and allow these to play out.”
The BoG’s pivot toward regulation is not entirely new. In August 2024, the Bank released draft guidelines proposing regulatory measures for Virtual Asset Service Providers (VASPs). These included mandatory registration, anti-money laundering (AML) compliance, and robust internal controls.
At the African Leaders and Partners Forum held earlier this year in Washington, D.C., Dr. Asiama reaffirmed the BoG’s commitment to operationalising a regulatory framework by the end of September 2025. This is expected to follow the passage of the Virtual Asset Service Providers (VASP) Act, which will empower the central bank to license and supervise crypto-related businesses, in collaboration with the SEC.
To ensure effective implementation, the BoG plans to establish a specialised supervisory unit for digital assets regulation.
Ghana’s move aligns with a broader continental shift, as peer countries such as Nigeria and South Africa have made significant advances in digital asset regulation. South Africa, for instance, has already licensed over 240 crypto firms under its regulatory framework.
Internationally, regulatory developments are also being driven by requirements from the Financial Action Task Force (FATF), which mandates AML/CFT compliance for virtual asset activities. Failure to comply could risk Ghana’s credibility and expose the country to potential grey-listing.
While acknowledging the risks associated with digital assets such as money laundering, terrorist financing, cyber fraud, and price volatility, Dr. Asiama highlighted the opportunities they present, especially in enhancing innovation and financial inclusion.
A comprehensive and balanced regulatory framework, he noted, would:
Foster innovation by offering legal clarity for fintechs and blockchain developers;
Promote financial inclusion through cost-efficient payment and remittance systems;
Mitigate systemic risks by moving crypto activity out of the shadows and under formal oversight;
Improve international credibility by aligning with global financial standards.
Although the BoG continues to pilot its own Central Bank Digital Currency (CBDC), the eCedi, Dr. Asiama’s comments underscore a new strategic focus – one that embraces the private crypto economy while safeguarding the broader financial system through regulation.
