Ghana to implement virtual asset regulations by the end of this year…Intense competition expected for leadership in Africa

African countries are preparing related bills to incorporate the virtual asset (cryptocurrency) industry into the formal system. The competition for dominance in the virtual asset industry appears to be intensifying.

On the 26th (Korean time), Cointelegraph reported that Johnson Asiama, governor of the Bank of Ghana, said they plan to implement virtual asset regulations by the end of this year. Ghana disclosed a draft of eight principles last August to strengthen registration and reporting obligations for virtual asset service providers (VASP). Virtual asset users account for about 9% of the total population.

Ghana is not the only country in Africa seeking to introduce virtual asset regulations. A total of 10 countries are accelerating the institutionalization of virtual assets.

In South Africa, in 2022 the Financial Sector Conduct Authority (FSCA) designated virtual assets as financial products and included them under the Financial Advisory and Intermediary Services Act. Since then, it has issued dozens of licenses and has rapidly expanded the industry ecosystem with custody partnerships such as Ripple and local bank Absa.

Mauritius also passed the 'Virtual; Assets and Token Offering Services Act' in February 2022. The Financial Services Commission (FSC) is the supervisory authority overseeing token issuance, wallets, exchanges, and custody businesses. In addition, it established regulatory standards for initial token offerings (ITO) reflecting Financial Action Task Force (FATF) guidelines.

Furthermore, Botswana, Nigeria, Namibia, Tanzania, Kenya, and Rwanda are accelerating the establishment of virtual asset regulations in Africa.