Ghana Tightens Grip on $3B Crypto Boom—Regulators Race to Tame Wild West Market
Ghana's financial watchdogs are stepping into the crypto fray—armed with regulations and a healthy dose of skepticism. The $3 billion domestic digital asset sector, once a regulatory gray zone, is now squarely in their crosshairs.
Why the crackdown? Explosive growth. What was once a niche for tech-savvy traders has ballooned into a financial force—complete with all the volatility and risks that keep traditional bankers awake at night.
The new rules aim to bring order without stifling innovation. Expect KYC checks, exchange licensing, and—of course—tax collection. Because nothing says 'government approval' like a paper trail.
Critics whisper this is less about consumer protection and more about control. After all, $3 billion in untapped revenue tends to focus bureaucratic minds. But hey—at least they didn’t ban it outright like some *cough* neighboring regimes.
One thing’s certain: Ghana’s crypto gold rush just got a sheriff. Whether that’s good news depends on which side of the ledger you’re on.
Regulators target currency stability
Ghana’s MOVE to regulate cryptocurrency could also stabilize the Ghanaian cedi in the longer term, as the local currency has exhibited extreme volatility in recent years. The currency has appreciated by 48% in the last 12 months. But the increase came after it posted a steep drop of 25% in the preceding year, underscoring its volatility.
This unpredictability makes monetary policy more challenging, particularly for Ghana, which heavily relies on imports. According to officials, regulating crypto WOULD help the central bank better forecast and steer inflation.
Governor Asiama explained that some of the capital flows in and out of the economy through cryptocurrencies were not captured in the country’s official data. He said this limited the central bank’s ability to make accurate economic decisions and impacted the cedi’s value.
Now Ghana has a benchmark interest rate of 28%, and inflation fell to 13.7% in June. This wide differential indicates underlying economic dislocations that the BoG aims to alleviate with better data collection and financial inclusion.
By regulating cryptocurrency, Ghana can better track money flows, monitor macroeconomic trends, and plan for long-term financial stability. It will also give the central bank greater visibility into how much crypto is being held, traded, or converted into foreign currency by individuals and businesses.
Ghanaians and Nigerians lead surge in crypto use
Web3 Africa Group’s chief executive officer, Del Titus Bawuah, said about 3 million Ghanaians — or 17% of all adults in the country — use virtual currencies. This includes Bitcoin, Ethereum, and stablecoins like USDT.
Bawuah said the data showed that Ghanaians used cryptocurrencies for much more than just investment. He noted that people are paying for everyday services, sending money, and running businesses with crypto. He emphasized that it is no longer a niche trend but has become mainstream.
According to Bawuah, traded crypto transactions in Ghana totaled $3 billion between July 2023 and June 2024. Nigeria recorded an even higher volume at $59 billion in crypto trades during the same period. Nigeria represents about half of sub-Saharan Africa’s $125 billion crypto volume.
Observers say one reason for the boom is a lack of faith in the traditional banking system, and a difficulty getting hold of U.S. dollars. Crypto is a solution, at least for cross-border payments and e-commerce. Crypto could also help to improve regional trade by circumventing currency exchange barriers, said Craig Stoehr, general counsel at pan-African stablecoin payments platform Yellow Card.
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