- Ghana’s central bank is drafting new crypto laws.
- Virtual asset operators would soon need licenses to operate in Ghana.
- The new crypto laws will cover anti-money laundering and user protection policies.
Ghana’s Central Bank is set to present a draft regulatory framework to address the nation’s cryptocurrency ecosystem, according to a Bloomberg report.
If passed, the new rules would allow the regulator to issue licenses to virtual asset firms operating in Ghana and would mark a major shift in the government’s official perspective on crypto.
Crypto isn’t so new in Ghana
While the proposed law is new, cryptocurrency has already gained significant traction in Ghana, with over three million adults representing 17% of the West African country’s population, are already using the technology. Most of these users engage with Bitcoin and the USDT stablecoin for both investment and transactions.
Related: Turkey Prepares Stricter Crypto Regulations to Combat Financial Crime
Ghana’s limitations in traditional banking remain a significant factor in the growing adoption of cryptocurrency. A notable sector of the population, particularly those in rural areas, invests in crypto and uses it to facilitate cross-border transactions.
Related: SEC Chair Atkins Declares a ‘New Day’ in Crypto Regulation with Clear Rules
However, despite the technology’s growing influence, Ghana hadn’t had clear rules on how to deal in the crypto ecosystem until this move by the nation’s apex bank.
Crypto regulation is part of a bigger plan
It is worth noting that the draft from the Ghanaian Central Bank will need to pass through the nation’s parliament before it can go into law. It is after the bill is passed into law that virtual asset platforms operating within the country will obtain the required license, which analysts expect to address areas such as anti-money laundering and user protection.
According to Elsie Addo Awadzi, the Second Deputy Governor of Ghana’s Central Bank, the latest move is part of a broader plan to introduce Ghana’s financial system into the modern digital age. Awadzi noted that the nation is already testing its digital currency, the e-cedi, which aligns with the upcoming laws at an appropriate time.
Most analysts believe that achieving a substantive crypto regulatory framework in Ghana will set the pace for other countries within the African region. Most of those countries already boast of high numbers of crypto users in mostly unregulated ecosystems.
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