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BoG to engage industry actors in operationalising virtual asset law

 BoG, virtual asset law

Tahiru Alhassan of the Bank of Ghana has disclosed that the central bank is making significant progress in operationalising Ghana’s recently enacted Virtual Asset Service Providers Act (VASP)., 2025 (Act 1154), with plans to engage industry stakeholders as it develops the directives and guidelines needed for its implementation.

Speaking during a UK-Ghana Chamber of Commerce and EY Ghana webinar on “The Evolving Regulatory Landscape for Virtual Assets in Ghana: Insights from the Bank of Ghana and Industry”, Mr. Alhassan remarked that “This is a whole new sector that has never been regulated in Ghana and we need to develop very comprehensive guidelines covering anti-money laundering and counter-financing of terrorism (AML-CFT), prudential requirements, consumer protection and market conduct, cybersecurity and technology requirements”.

He said the Bank of Ghana has already completed drafts of a number of guidelines and expects to begin publishing some of them later in the year.

As we normally do stakeholder consultation, this is a time that we will invite industry players, the Association of Banks, fintechs, the Chamber of Digital Asset and Blockchain Innovation and other targeted experts to help us review, so we have the right perspective from the industry as well before we finalise,” he stated, reflecting the Bank's commitment to developing a framework that is practical and tailored to Ghana's market.

 Understanding virtual assets and Ghana’s emerging regulatory framework

Virtual assets refer broadly to digital financial instruments such as cryptocurrencies, stablecoins, tokenised assets and blockchain-based financial solutions used for payments, investments and cross-border transactions.

In Ghana, their growing adoption has been driven by peer-to-peer accessibility, mobile money penetration and digital financial readiness, placing the country in a favourable position for digital finance innovation.

To regulate this space, Ghana enacted the Virtual Asset Service Providers Act (Act 1154) in 2025, to establish a legal framework for licensing and registration of entities operating in the sector.

Under this framework, regulation is based on a dual oversight model involving the Bank of Ghana (BoG) and the Securities and Exchange Commission (SEC). While the BoG focuses on payment systems, monetary stability and financial infrastructure, the SEC supervises investment-related virtual asset activities.

Key provisions of the framework include mandatory licensing for high-risk activities, registration for lower-risk operations, and compliance with anti-money laundering and counter-terrorism financing (AML/CFT) obligations, especially the “Travel Rule.”

A notable feature of the regulatory approach is the policy sandbox, which has admitted selected entities to test a variety of virtual asset use cases and business models. This initiative enables regulators to refine draft guidelines by observing real market operations and ensuring that policies are “fit for purpose” within the Ghanaian context.

Industry participants have welcomed the regulatory direction. Philip Twum, the Head of Business Development at Fido – a digital lending organisation operating in Ghana’s fintech space, and Non-Executive Director at Yellow Card Ghana Limited - one of the earliest stablecoin companies in Ghana, said during the webinar that the existence of a framework has improved confidence for operators from a business planning and strategic point of view.

Operating in an area where it's not very clear when it comes to regulation is not comfortable for any operator. There is no confidence to invest, expand operations, etc, because you don't know what comes next. So, the Bank of Ghana has done a really good job. They have been clear in the communication, clear in the stance, clear in the regulation, and now we are looking forward to the operational guidelines”, Mr. Twum said.

Similarly, Elikplim Kitsikpui, Lead Digital Technology Consultant at EY Ghana, highlighted that regulation strengthens trust and operational confidence within Ghana’s virtual asset landscape.

The Bank of Ghana has done very well. We've seen this happen when it comes to the fintech ecosystem, and now we are seeing it with the virtual assets ecosystem”.

Navigating the market: what businesses must do to succeed

Stakeholders, during the webinar, urged businesses to proactively prepare for the evolving regulatory environment.

Philip Twum emphasised that regulatory clarity now allows firms to make strategic decisions, particularly around licensing, noting that “any serious player is looking for licensing” as it provides direction and enables capital allocation.

Elikplim Kitsikpui, on the other hand, advised organisations to take deliberate positions – whether to lead, follow or observe – and cautioned against inaction, stating that “the cost of getting ready today is small and you can always walk it back. But you cannot walk back of the cost of being locked out of such an opportunity by delaying”.

He further suggested that businesses should register early, pilot limited initiatives, and align investments with regulatory milestones to avoid premature capital deployment.

From a risk perspective, Felix Kesseh, a Manager in EY Ghana’s Risk Consulting practice, cautioned that institutions should not treat virtual assets as “business as usual,” and emphasised the need for enhanced risk management and control frameworks, particularly in relation to virtual asset transactions, third-party relationships, and emerging financial crime risks.

He added that choosing not to offer virtual asset services does not necessarily eliminate exposure, as financial institutions may still face indirect risks through customer transactions and related ecosystem participants.

Collectively, the panel underscored the importance of governance structures, compliance systems, and strategic alignment with regulatory developments to succeed in Ghana’s virtual asset ecosystem.

Driving innovation with protection: BoG’s commitment to sustainable growth

Alhassan reaffirmed the Bank of Ghana’s commitment to balancing innovation with financial stability, emphasising that regulation is not solely about risk management but also about unlocking the transformative potential of digital finance.

He stated that while financial integrity and consumer protection remain central, the Bank is equally focused on leveraging virtual assets to “transform financial service delivery” in Ghana.

The panel also explored broader topics including licensing readiness, cross-border interoperability, tokenisation opportunities, risk management frameworks, and the role of stablecoins in remittances.

The webinar, which brought together regulators, industry players and advisory experts, was moderated by Traci Gyebi, a Technology Consultant at EY Ghana, and organised as the first of a four-part UKGCC and EY Ghana’s Digitalisation series for 2026.

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