Bank of Ghana announces plans to license crypto service providers

Key points:

• The Bank of Ghana stated that there is currently no separate law regulating the activities of crypto service providers in the country, but work on the regulatory framework is already underway.
• The central bank emphasized that its position on crypto assets is neutral, but regulation is necessary following updates to FATF standards.

The Bank of Ghana (BOG) has announced that there is currently no specific law regulating the activities of virtual asset service providers (VASPs) in the country. The central bank noted that its position on crypto assets is neutral — “neither hostile nor friendly.”

However, the bank emphasized that following changes to the Financial Action Task Force (FATF) standards in 2019, virtual assets can no longer remain unregulated.

Ghana prepares rules for the crypto sector

The Bank of Ghana said that the country seeks to support innovation in the field of digital assets, but at the same time wants to ensure a level playing field for all participants — both new startups and traditional financial organizations.

Earlier in July, the authorities had already announced plans to license crypto companies. At that time, the government was preparing a draft law that would create a legal framework for regulating crypto services and help increase state revenues.

In a policy document, the Bank of Ghana explained that regulation should be proportionate to the risks associated with specific activities in the cryptocurrency sector. The document states:

“Each virtual asset use case should be reviewed from a risk perspective, recognising that not all activities carry the same level of threat or systemic impact.”

Among the main risks identified by the Bank of Ghana are:

• the impact on monetary policy;
• potential threats to financial stability;
• violation of market integrity and transparency.

The bank also called for close cooperation between government regulators to develop a unified policy for supervising and controlling the crypto sector.

In September, the Pakistan Virtual Asset Regulatory Authority (PVARA) called on international crypto companies to apply for a local license.