Ghana’s Crypto Awakening: Licensing Platforms to Tap into Web3 Growth
Ghana is taking a significant step towards embracing the world of cryptocurrency and digital assets. The country plans to introduce licenses for crypto platforms, aiming to capitalize on the growing Web3 industry and provide clarity for digital assets. But what kind of impact can we expect from this move?
Regulatory Framework in the Works
The central bank of Ghana is working on a legal framework to regulate digital asset companies, which is expected to be sent to parliament by September this year. In a recent interview with Bloomberg, the governor of the Bank of Ghana, Johnson Asisima, revealed that the proposed law aims to offer more regulatory clarity, increase cross-border trade, collect financial data, and drive strategic investments in Web3.
Asisima acknowledged that Ghana is “actually late in the game,” with many companies and individuals already using cryptocurrency for everyday transactions. This has had an impact on the local currency, highlighting the need for a clear regulatory framework. According to Bloomberg, Ghana’s fiat currency, the Cedi, rose by 48% last year, making it one of the best-performing currencies after recovering from a 25% decline the previous year.
Crypto Adoption on the Rise
While the exact number of people using crypto in Ghana is unclear due to the lack of regulatory framework, data from Web3 African Group shows that crypto transactions in the country reached $3 billion between July 2023 and June 2024. Although this number is significant, it pales in comparison to other African nations like Nigeria, which saw a transaction volume of $59 billion during the same period.
Ghana Catches Up with South Africa
Ghana is set to join South Africa as one of the few African countries with a formal license process for crypto companies. South Africa has already licensed 248 crypto asset service providers, with 56 more applications under review. By introducing its own licensing framework, Ghana is taking a crucial step towards creating a more regulated and attractive environment for crypto businesses and investors.
As Ghana moves forward with its crypto licensing plans, it will be interesting to see how this development affects the country’s economy and its position in the global Web3 landscape. One thing is certain – Ghana’s crypto awakening is just beginning, and it’s worth keeping a close eye on the country’s progress in the coming months.
