Ghana Central Bank Policy Document Calls for Risk‑Based Regulation of Virtual Assets

Ghana’s central bank is moving to regulate virtual assets, adopting a policy designed to foster responsible crypto innovation while guaranteeing a level playing field for all financial institutions.

Balancing Innovation and Competition

The Bank of Ghana (BOG) has acknowledged that the country currently lacks a dedicated legal framework for regulating virtual asset service providers (VASPs). Its policy stance on virtual assets is described as “neither explicitly hostile nor explicitly friendly.” However, the central bank emphasised that recent developments, including the 2019 changes to Financial Action Task Force (FATF) standards, mean that “virtual assets can no longer remain outside of the regulatory remit.”

In a document outlining its policy position released on Nov. 5, the BOG stated that Ghana aims to foster responsible innovation within the virtual asset ecosystem while ensuring a level playing field for both established and new participants in the financial sector.

The release follows the central bank’s earlier announcement of plans to license VASPs operating in the country. As reported in July, the Ghanaian government was preparing a draft bill to establish a regulatory framework for VASPs, with licensing expected to help generate revenue for the state.

Meanwhile, the policy document outlines the approach the proposed regulatory framework must adhere to.

“Regulatory actions should be proportionate to the risks posed by virtual asset activities. 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,” the bank’s policy document states.

Key risks identified include potential impacts on monetary policy, financial stability, and market integrity. The document also calls for ongoing collaboration among regulatory agencies to ensure coherent policy and oversight.

Finally, the BOG highlighted the need to improve financial literacy around virtual assets, urging greater consumer education to promote safer and more informed use of digital financial products and services.

FAQ 💡

• What is Ghana’s current stance on virtual assets? The Bank of Ghana says its policy is neutral, neither hostile nor explicitly friendly.
• Why is regulation now a priority? BOG cites FATF’s 2019 standards, stressing virtual assets can’t remain outside oversight.
• What steps is Ghana taking? The government plans to license VASPs and introduce a draft regulatory bill.
• What risks are regulators watching? They highlight threats to monetary policy, financial stability, and market integrity.