Ghana has enacted a new Virtual Asset Service Providers Act, establishing a regulatory framework for its rapidly expanding digital asset sector. This legislation adopts a risk-based and technology-neutral approach, aiming to balance innovation with consumer protection and financial stability. The University of Professional Studies, Accra (UPSA) Law School recently hosted a roundtable discussion on this critical development.
The 2026 Absa-UPSA Law School Quarterly Banking Roundtable brought together experts in capital markets and digital asset management. Mr. Tahiru Alhassan, Head of Oversight and Compliance of the Virtual Assets Department at the Bank of Ghana, represented Mr. Philip Kwaw Sebuabe. Mr. Alhassan explained that the new law avoids both an outright ban and a completely unregulated market for digital assets.
This regulatory move is part of Ghana's broader economic strategy to embrace digital transformation while mitigating associated risks. The country has seen significant growth in fintech and digital payment solutions. The new Act provides a much-needed legal foundation for an industry that has largely operated without formal oversight, aligning Ghana with international best practices in digital finance.
Mr. Alhassan stated that "Consumer protection remains central to the regime." He detailed requirements for capital adequacy, the secure custody of client assets, and strict adherence to anti-money laundering (AML) and counter-terrorist financing (CTF) rules. These measures are designed to safeguard users and prevent illicit financial activities within the digital asset space.
The implementation of this Act is expected to have significant implications for Ghana's financial landscape. Fintech law expert Kwesi Dadzie-Yorke Esq., Co-Founder of Asiedu & Yorke, described the Act as a major step. He believes it will give the digital asset sector regulatory legitimacy. This formal supervision could enhance access to banking services and boost investor confidence. It will also allow licensed firms to demonstrate their regulatory standing.
However, Mr. Dadzie-Yorke also cautioned about persistent challenges. These include fraud, high compliance costs for operators, and counterparty risks. He urged digital asset operators to implement automated sanctions-screening systems. Strong contractual safeguards are also essential to navigate these complexities effectively.
The panel, including Dr. Virág Blazsek, Associate Professor of Law at the University of Leeds, agreed on the framework's flexibility. Ghana’s principles-based approach allows it to adapt to new developments. These include tokenisation, decentralised finance (DeFi), and stablecoins. This adaptability is crucial in a rapidly evolving technological landscape.
Mr. Alhassan, however, issued a specific warning regarding foreign currency-backed stablecoins. He described them as "dollarisation on the blockchain," indicating a concern about their potential impact on Ghana's monetary sovereignty. He suggested that cedi-backed stablecoins could be safely tested within a regulatory sandbox environment. This approach would allow for controlled experimentation and evaluation before broader implementation.
Prof. Kofi Abotsi, Director of the UPSA Law School, highlighted the roundtable's purpose. He stated it bridges academic research with regulatory and industry expertise. This collaboration supports Ghana’s ongoing digital financial transformation. The new Act represents a proactive step by Ghana to harness the opportunities of digital assets. It also aims to manage their inherent risks effectively for the benefit of its citizens and economy.