Banking consultant Dr. Richmond Atuahene has urged Ghanaian investors to exercise caution when engaging in cryptocurrency trading, citing the absence of robust regulatory frameworks and lessons from past financial collapses.
Speaking at the 2025 Money Summit in Accra, Atuahene highlighted parallels between the volatile crypto market and the Menzgold scandal, a gold-trading scheme that collapsed in 2018, leaving thousands of investors stranded.
“Unregulated investments like cryptocurrency carry significant risks,” Atuahene warned. “Without oversight, individuals risk losing their savings, as seen in the Menzgold case.” He emphasized that regulation serves as a protective measure rather than a barrier, stressing the need for investor education and stronger safeguards to prevent similar crises.
Interest in digital assets has surged in Ghana, particularly among younger demographics attracted by high-yield promises. However, Atuahene noted that many lack awareness of market volatility or the technical complexities of blockchain technology. “Diversification is prudent, but it must align with financial literacy and structured oversight,” he said.
Ghana’s Securities and Exchange Commission (SEC) has repeatedly cautioned against unlicensed crypto platforms, yet enforcement gaps persist. Atuahene called for collaborative efforts between regulators, fintech firms, and traditional financial institutions to develop balanced policies that foster innovation while mitigating risks.
The Menzgold collapse, orchestrated by Nana Appiah Mensah (NAM1), remains a cautionary tale. The company’s unlicensed operations led to billions in losses, underscoring the dangers of unchecked financial ventures. Atuahene warned that without intervention, cryptocurrency markets could follow a similar trajectory.
As Ghana explores digital currency initiatives, including a potential central bank digital currency (CBDC), stakeholders face the challenge of balancing technological advancement with consumer protection. The push for cautious progress reflects broader tensions in emerging economies navigating the promise and pitfalls of digital finance. For a nation still recovering from recent debt restructuring and banking sector reforms, the stakes are particularly high. The path forward, experts agree, hinges on marrying ambition with accountability a lesson etched deeply in Ghana’s financial history.
