BoG Unveils VASP Bill to Protect Cedi and Strengthen Crypto Regulation
The Bank of Ghana (BoG) has introduced a new legislative framework known as the Virtual Asset Service Providers (VASP) Bill, designed to regulate cryptocurrency activities and safeguard the stability of the Ghanaian cedi.
The bill, which is currently before Parliament, seeks to provide a clear legal and regulatory structure for virtual asset transactions, including the operation of cryptocurrency exchanges, digital wallets, and other blockchain-based financial services in Ghana.
According to the BoG, the primary goal of the VASP Bill is to prevent financial instability, combat illicit financial flows, and ensure consumer protection in the rapidly evolving digital finance sector.
Speaking at a stakeholders’ engagement in Accra, the Second Deputy Governor of the Bank of Ghana, Mrs. Elsie Addo Awadzi, explained that the legislation will help balance innovation with regulation, enabling fintech growth while maintaining the integrity of Ghana’s financial system.
“This bill represents a critical step in aligning Ghana’s financial ecosystem with global standards. It will strengthen the Bank’s oversight role, enhance transparency in digital asset transactions, and ensure that virtual asset activities do not undermine the value of the cedi,” Mrs. Awadzi stated.
The VASP Bill will require all service providers dealing in cryptocurrencies and digital assets to register and obtain licenses from the Bank of Ghana. This move aims to curb unregulated operations and protect Ghanaians from fraudulent schemes and high-risk investments associated with unlicensed digital platforms.
Financial experts have welcomed the initiative, describing it as a timely intervention that could position Ghana as a leading fintech hub in Africa while preventing speculative activities that threaten national currencies.
The Bank of Ghana has also indicated plans to intensify public education on digital assets, emphasizing the need for awareness on the risks and benefits of cryptocurrency trading.
Meanwhile, discussions are ongoing between the BoG, the Ministry of Finance, and Parliament’s Finance Committee to ensure the bill aligns with international frameworks such as those of the Financial Action Task Force (FATF) and the International Monetary Fund (IMF) standards on digital finance regulation.
Once passed, the VASP Bill will complement the BoG’s ongoing work on the e-Cedi project, Ghana’s central bank digital currency, which is expected to promote secure, inclusive, and cash-lite financial transactions across the country.
Source: Thepressradio.com
