President John Dramani Mahama has officially signed the Virtual Asset Service Providers (VASP) bill into law, ushering Ghana into a regulated virtual assets ecosystem. The move marks a historic milestone in the country’s financial sector development, providing a clear legal path for the digital assets industry.
The news was confirmed in a statement by Mensah Thompson, Deputy Director-General of the Securities and Exchange Commission (SEC), following the bill’s passage by Parliament after an extensive period of consideration.
A New Framework for Digital Finance
The new law establishes a comprehensive legal framework for the use, trading, and provision of services related to virtual assets, including cryptocurrencies. This effectively brings all activities within the digital assets space under formal regulatory oversight for the first time in Ghana’s history.
With the law now in force, two primary institutions will lead the supervision of the sector:
- The Securities and Exchange Commission (SEC): Focused on market conduct and investor protection.
- The Bank of Ghana (BoG): Ensuring financial stability and monitoring the impact on the broader monetary system.
Strategic Goals of the Legislation
According to the statement, the primary objectives of the VASP law are to:
- Strengthen Investor Protection: Safeguarding Ghanaians against fraudulent schemes and market volatility.
- Ensure Market Integrity: Creating a transparent environment for digital transactions.
- Foster Financial Stability: Aligning virtual asset activities with national economic goals.
- Promote Innovation: Encouraging the growth of fintech within a secure regulatory “sandbox.”
Stakeholder Contributions and Bipartisan Support
The statement by Mensah Thompson extended congratulations to the President, the Minister for Finance, the Governor of the Central Bank, and the Director General of the SEC for their foresight.
Special recognition was given to the Hon. Isaac Adongo, Chairman of the Finance Committee of Parliament, for his leadership throughout the legislative process. Thompson also thanked industry operators, including large exchanges and independent traders, whose technical inputs helped shape the final bill.
“The Bill among other things legalizes the usage, trading and provision of service in the virtual assets (including cryptocurrencies) space,” Thompson wrote on Facebook.
Aligning with Global Trends
The enactment of the VASP law is a strategic move to align Ghana’s financial system with global trends in digital finance. By creating a robust and clear regulatory framework, the government aims to expand financial inclusion and attract international investment into Ghana’s rapidly evolving tech landscape.
Source: Citi News Room
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