Ghana Moves to License Crypto Platforms As Digital Usage Soars

Ghana plans to license crypto platforms to improve oversight and increase tax revenue from digital transactions.

About 17% of Ghanaian adults use cryptocurrency, but current laws do not capture their activity in financial data.

The central bank aims to stabilize the cedi and support trade by regulating the use of cryptocurrencies across the country.

Ghana’s central bank is preparing legislation to license cryptocurrency platforms in a bid to regulate and tax virtual currency activities. The framework is expected to reach parliament by September, according to the Bank of Ghana governor.

Crypto Usage Outpaces Oversight in West African Nation

Cryptocurrency usage is widespread in Ghana, with nearly 3 million adults, 17% of the population, reportedly engaging in digital asset transactions. The lack of regulation has not subjected these activities to formal financial reporting, resulting in a gap in the collection of economic data. The government is now trying to fix that by licensing and regulations.

The step aligns with overall initiatives to track down payments, increase cross-border movements, bring investment, and protect the local currency. In Ghana, the volume of digital transactions exceeded $3 billion in July 2023-June 2024, indicating a promising field that remained out of the scope of existing regulations.

Volatile Cedi Drives Central Bank to Act

The central bank is also seeking tools to better manage the Ghanaian cedi, which has experienced sharp fluctuations. The cedi rose 48% over the past year after a 25% fall in the previous period. This volatility complicates inflation management in an economy reliant on imports.

The Bank of Ghana sees digital currency oversight as a way to stabilize economic indicators. Currently, the policy rate is fixed at 28%, while inflation stood at 13.7% in June. Officials believe unmonitored crypto activity may distort real rates and impact monetary policy outcomes.

Authorities Highlight Regional Trade and Data Benefits

The new regulation will likely set rules on transparency, risk management, and reporting of data by the licensed platforms. According to the officials, the digital assets have the potential to facilitate intra-African trade by decreasing the dependency on dollar liquidity and accelerating settlements.

Data from industry sources show Ghana’s crypto activity remains lower than Nigeria's, which logged $59 billion over the same 12-month period. However, both countries contribute significantly to sub-Saharan Africa’s estimated $125 billion in digital currency transactions.

Authorities say better financial data from crypto platforms will strengthen policy tools. The regulation will also support fintech innovation while maintaining safeguards for users and the national economy.

Private Sector Pushes for Formalization

The move is also being supported by stakeholders in the digital finance ecosystem in Ghana. A number of start-ups are gearing up to introduce regulated platforms and exchanges. They believe that the fact that virtual currencies are now officially recognized will foster innovations and promote economic resilience in the long run in Africa.

Crypto is still a vital remittance, small business payments, and for digital trade. The new framework can provide the investors with clarity as well, and local currencies could get protection against uncontrolled volatility.