Ghana Moves to License Crypto Firms, Citing Revenue and Oversight Goals

The Ghanaian central bank is set to introduce a draft regulatory framework for licensing digital asset companies by September.

Acknowledging Crypto’s Enduring Presence

The Ghanaian central bank has reiterated its goal to license digital asset companies, stating that a draft regulatory framework to oversee them is set to be tabled in the nation’s parliament by September. According to Johnson Asiama, governor of the Bank of Ghana, the proposed law will enable the West African nation to leverage cryptocurrencies, attract strategic investment and achieve other objectives.

The licensing of cryptocurrency firms will reportedly allow Ghana to capture revenue from these companies as well as gain insights into how local residents use digital assets. Asiama’s latest remarks on the central bank’s plans to regulate cryptocurrencies came a few months after he made similar statements during a visit to the United States.

At the time, the governor revealed the central bank would establish a unit dedicated to digital assets because he was convinced that the underlying technology would endure. In his latest remarks, Asiama again reiterated that cryptocurrencies were here to stay and that Ghana needs to make up for lost time.

“We are actually late in the game,” Asiama said.

He warned that continuing to ignore the realities on the ground could be detrimental to the local currency, which appreciated by nearly 50% over the last 12 months. Another Bank of Ghana official, Kwame Oppong, head of fintech and innovation, said the central bank is aware that millions of Ghanaians use cryptocurrencies. He said the bank’s goal is “to put safeguards and rails around it.”

Meanwhile, Del Titus Bawuah, chief executive officer at Web3 Africa Group, said it is imperative for African countries “to mainstream cryptocurrency into their financial system for better oversight.” Bawuah added that evidence proving companies and citizens heavily use virtual currencies further demonstrate why it is in the best interest of African authorities to regulate them.