By Benadeta Mwaura - Reporter
Ghana, 24 December 2025 - In a landmark move for Africa’s digital economy, Ghana’s parliament has passed the Virtual Asset Service Providers Bill, 2025, making cryptocurrency trading officially legal under a structured regulatory framework and positioning the country as a potential hub for digital asset innovation.
The legislation grants the Bank of Ghana (BoG) clear authority to license and supervise crypto asset service providers (CASPs), ending years of legal uncertainty for traders and businesses operating in the space.
Under the new regime, exchanges, wallet operators, brokers, and other digital asset platforms must obtain formal approval and comply with licensing, anti-fraud and anti-money-laundering measures before they can operate lawfully in the country.
“Virtual asset trading is now legal, and no one will be arrested for engaging in cryptocurrency, but we now have a framework to manage the risks involved,” Bank of Ghana Governor Dr Johnson Pandit Asiama said, underscoring the importance of legal clarity for a market long viewed with regulatory caution.
“These are not just legal milestones; they are enablers of better policies, stronger supervision and more effective regulation.”
Asiama and other officials have emphasised that the framework is designed to protect consumers from fraud, combat money laundering and reduce systemic risk — while also nurturing innovation and financial inclusion, particularly among young entrepreneurs and tech-driven startups.
Ghana’s decision comes as crypto adoption rises sharply across Africa. According to the Chainalysis 2025 Geography of Cryptocurrency Report, Sub-Saharan Africa processed over $205 billion in on-chain value between July 2024 and June 2025, making it one of the fastest-growing regions globally for digital asset activity. Ghana ranked among the top five Sub-Saharan African countries by total crypto value received during this period, reflecting vibrant market participation despite regulatory uncertainty.
Before the law, cryptocurrency activity had operated in a legal grey area, leaving both investors and service providers vulnerable to fraud or abrupt enforcement actions. With the new framework in place, individuals no longer face the risk of arrest for lawful crypto activity, and businesses now have clear legal paths to entry, including licensing requirements, compliance standards and oversight mechanisms tied to global best practices.
Under the Virtual Asset Service Providers Bill, Bank of Ghana becomes the primary regulator of digital assets, with the power to license and supervise providers of crypto-related services.
Firms must implement anti-money-laundering (AML) and counter-terrorist financing (CTF) measures, including customer due diligence and suspicious activity reporting.
Compliance with international standards such as the FATF Travel Rule is mandatory, improving transparency and cross-border cooperation.
Regulatory instruments and licensing guidelines are expected to roll out progressively in early 2026, allowing existing and new operators time to prepare for full compliance.
Supporters of the law argue that clear rules will attract responsible investors, fintech innovators and international exchanges, ultimately fostering jobs, capital inflows, and deeper financial inclusion in West Africa’s third-largest economy.
Ghana’s move follows similar efforts across the continent. Kenya became one of the first African countries to adopt a comprehensive virtual asset legal framework with the Virtual Asset Service Providers Act, 2025, which was passed by Parliament and signed into law in October 2025.
The Kenyan law provides a clear, statutory basis for regulating digital assets and applies to all virtual asset service providers operating in or from Kenya.
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It designates the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA) as primary regulators, with responsibilities split between licensing, supervision, and financial oversight.
Critically, the VASP Act includes robust anti-money-laundering and counter-terrorism financing provisions, aligns Kenya with Financial Action Task Force (FATF) standards, and aims to protect investors by requiring transparent governance, operational safeguards and risk-mitigation protocols.
In addition, new capital thresholds and compliance rules, such as minimum paid-up capital and professional indemnity insurance requirements, are being introduced to ensure licensed firms have the financial strength to protect clients and withstand market volatility.
Ghana and Kenya now join a growing cadre of African nations formalising digital asset markets. Across the continent, regulators are balancing the twin imperatives of innovation and risk control:
Nigeria has taken incremental steps to clarify the legal status of digital assets, emphasising compliance and investor protection.
South Africa is working on refined regulatory frameworks that align with global AML and financial crime standards while encouraging fintech growth though not yet fully implemented.
Other markets such as Namibia, Botswana and Zimbabwe are exploring crypto regulation through sandboxes or policy formulation processes.
Analysts from Coin Telegraph note that as African regulators adopt more structured laws, the continent’s crypto investment scene, already dynamic and youthful, could attract more institutional participation, deeper capital markets integration and scaled financial innovation.
While legalisation brings clarity and investor confidence, challenges remain:
Implementation of licensing regimes in both Ghana and Kenya will require regulatory capacity building, particularly as firms prepare for compliance in 2026.
Balancing innovation with oversight is delicate, overly strict rules could stifle startups, while weak supervision risks fraud and systemic vulnerabilities.
Public education and consumer safeguards will be crucial to protect newcomers in a market that has seen speculative volatility and high-profile scams in the past.
Nevertheless, the formal recognition and regulation of digital assets in Ghana and Kenya are a major generational shift, marking the transition from informal, unregulated markets to institutionalised, transparent platforms that could redefine how Africans invest, transact and participate in the global digital economy.
