Ghana passes bill to legalize virtual assets…introduces exchange licensing·supervision framework

Ghana's parliament has passed a bill that legalizes the widespread use of virtual assets (cryptocurrencies).

On the 22nd (local time), Bloomberg reported that Ghana's parliament approved the 'Virtual Asset Service Providers Bill'. The bill includes provisions to introduce a licensing system for virtual asset trading platforms and to establish a basis for supervising trading activities.

Johnson Asiama, governor of the Bank of Ghana, said, "With the passage of this bill, it will be possible to issue licenses to and supervise virtual asset-related businesses," adding, "The aim is to strengthen transparency and the regulatory framework."

The Bank of Ghana estimates that about 3 million people, roughly 17% of the adult population, are trading virtual assets. The central bank has said that this spread of trading could also affect management of the official currency, the cedi (cedi), and has raised the need for regulation.

Governor Asiama explained, "The goal is to bring emerging financial activities into a clear and responsible regulatory framework," adding, "It will also help reduce banks' costs, improve customer experience, and support small businesses and merchants."

Meanwhile, according to Web3 Africa Group, Ghana's virtual asset trading volume over one year to June 2024 was estimated at about 3 billion dollars. Over the same period, Nigeria's trading volume was 59 billion dollars, nearly half of sub-Saharan Africa's total trading volume (125 billion dollars).