As the global cryptocurrency market continues to expand, financial sector regulators in Ghana are being urged to take a more proactive role in defining the regulations around digital assets, particularly cryptocurrencies.
Richard Nunekpeku, Managing Partner at Sustineri Attorneys PRUC, emphasized the need for regulatory clarity in order for Ghana to harness the potential benefits of digital currencies while mitigating the risks associated with them.
With cryptocurrencies seeing unprecedented growth, partially driven by expectations of favorable regulatory changes, there is growing international debate over their classification. In the U.S., for instance, the Trump administration’s new crypto task force, led by the Securities and Exchange Commission (SEC), aims to establish clear regulations for digital assets. At the same time, Bitcoin reached new record highs, surpassing $100,000, and creating waves in the global market.
However, despite these developments, there remains a significant amount of uncertainty regarding the future of cryptocurrencies. According to Nunekpeku, while a cautious approach is necessary, a clear regulatory framework will allow Ghana to better protect itself from the inherent risks of digital assets, which include market volatility, financial fraud, and illicit activities.
“Ghana has adopted a ‘wait and see’ approach so far,” said Nunekpeku. “Now, it’s time for the government and regulators to step up with clarity on their classifications, as this will inform the type of framework necessary to regulate and monitor crypto-related activities.”
The Bank of Ghana (BoG) has been cautious in its stance, issuing multiple notices warning against the use of cryptocurrencies, although it has also taken steps to develop digital asset guidelines. The latest draft, which encourages innovation but still prohibits financial institutions from facilitating crypto transactions, signals the regulator’s interest in creating a balanced environment for digital finance.
Nunekpeku believes that the government can enable innovation while ensuring stability by implementing forward-looking regulations that balance the potential of new technologies with the need to protect users and maintain financial stability. He further recommended strengthening the regulatory framework by investing in technology, particularly in areas such as anti-money laundering (AML) compliance, and fostering collaboration between regulators, innovators, and stakeholders.
“The government’s role is to create an environment that encourages innovation but ensures that financial sector goals are achieved while protecting end users,” said Nunekpeku. He stressed that regulators must be agile, able to respond quickly to market instabilities and safeguard the financial system from the risks of crypto volatility.
One key strategy that Nunekpeku suggested is the promotion of stablecoins—cryptocurrencies pegged to traditional assets like the US dollar—as a way to mitigate the extreme price fluctuations seen in some digital currencies.
Alongside these regulatory and technological strategies, Nunekpeku highlighted the importance of using emerging technologies such as blockchain to address security risks. Blockchain could be leveraged to create more transparent systems for know-your-customer (KYC) and anti-money laundering (AML) processes, ensuring that crypto platforms operate within the bounds of the law.
Additionally, he emphasized the need for public education to ensure users understand the risks involved in cryptocurrency transactions. Educating the public on the implications of engaging with digital currencies is critical to promoting financial literacy and minimizing potential harms to end-users.
The conversation surrounding cryptocurrencies in Ghana is part of a broader global discussion on how regulators should approach this new asset class. As the market for digital currencies continues to evolve, Ghana’s approach will play a pivotal role in shaping its readiness to fully engage with the African and global financial landscapes.
