Ghana officially legalizes cryptocurrency trading and plans to explore gold-backed stablecoins

On Monday, Ghana announced that Parliament has passed the "Virtual Asset Service Providers Bill." According to the bill, individuals or institutions engaged in digital asset-related businesses must register with and be regulated by the Bank of Ghana or the Securities and Exchange Commission, depending on the nature of their business.

Johnson Asiama, Governor of the Bank of Ghana, stated that the bill lays the foundation for the licensing and regulation of the virtual asset industry, ensuring that emerging activities are incorporated into a clear, accountable, and well-governed framework. He also pointed out in a previous speech that the passage of the bill means that individuals will no longer be arrested for trading cryptocurrencies, and the goal of the new framework is to effectively manage the associated risks.

Data shows that Ghana processed approximately $3 billion in cryptocurrency transactions from July 2023 to June 2024, with about 17% of adults in the country believed to have used crypto assets. Ghana plans to focus on promoting the application of crypto technology in areas such as payments, trade financing, foreign exchange settlement, and market infrastructure by 2026 to support cross-border business activities, including "targeted exploration" of asset-backed digital settlement tools such as gold-backed stablecoins.