Ghana Legalizes Crypto Trading with New VASP Regulatory Framework

In a major development for Africa’s financial landscape, Ghana has passed legislation that places cryptocurrency trading under a clear legal and supervisory framework for the first time. Announced by Bank of Ghana Governor Johnson Asiama, the newly approved Virtual Asset Service Providers (VASP) law makes crypto trading legal nationwide while empowering regulators to license and monitor companies operating in the sector. Governor Asiama framed the development as a critical shift from a period of uncertainty to one of structured oversight, explicitly stating that while crypto activity will no longer attract criminal sanctions, it will now be subject to firm regulatory controls.

The legislation directly addresses a pressing reality: the rapid adoption of crypto among Ghanaians. Government estimates suggest millions in the country have already engaged in digital asset trading, a trend that forced policymakers to move from issuing warnings to establishing formal regulation. The law is designed to balance this organic, grassroots adoption with the significant risks associated with unregulated markets, including fraud and extreme volatility, which authorities have repeatedly cautioned the public about in recent years.

At the center of the new framework is the Bank of Ghana, which becomes the lead authority responsible for supervising crypto-related businesses. Under the legislation, key service providers—including exchanges, wallet providers, and custodial services—will be required to obtain licenses before they can operate legally. To create a robust supervisory net, the Securities and Exchange Commission (SEC) will work alongside the central bank. This dual-regulator model is intended to close potential gaps in supervision and standardize compliance across the entire industry.

The regulatory requirements for licensed firms are comprehensive. Companies must demonstrate financial soundness, maintain rigorous internal controls, and comply fully with anti-money laundering (AML) and counter-terrorist financing (CFT) rules. The framework also introduces specific consumer protection measures and grants regulators enhanced powers to act against misconduct, financial crime, and abusive practices. Furthermore, the law links Ghana’s crypto market more closely with global standards by mandating cooperation on transaction monitoring and data-sharing with international bodies.

Beyond managing risk, the Ghanaian government views the VASP law as a significant economic opportunity. Governor Asiama stated that the framework is intended to attract responsible fintech firms and investors while supporting innovation, particularly among the young entrepreneurs who have been primary drivers of crypto adoption in the country. By clarifying the legal status of digital assets, officials aim to channel activity into regulated, transparent platforms rather than informal or offshore markets, thereby curbing illicit digital asset trading and bringing economic activity into the formal sector.

This strategic move aligns with accelerating crypto activity across the African continent. Recent industry data, including a report from Chainalysis, underscores the urgency for regulatory frameworks. The data shows sub-Saharan Africa is among the world’s fastest-growing regions for on-chain transactions. Between July 2024 and June 2025, the region received more than $205 billion in on-chain value, representing a staggering increase of roughly 52% from the previous year. Ghana’s new law positions it to harness this growth responsibly, setting a precedent for other nations in the region facing similar pressures to establish rules that protect users without stifling innovation.