Cryptocurrency Regulation Encourages Innovation and Attracts Investment, According to Gillian Darko of YellowCard
The Bank of Ghana has announced plans to introduce a Virtual Asset Service Providers (VASP) Act, scheduled for rollout by September 2025 [3][5]. This regulatory framework aims to formalise and regulate the digital asset ecosystem in Ghana, positioning the country as a potential digital finance hub in Africa [6].
Under the proposed Act, virtual asset service providers, including cryptocurrency exchanges, wallet providers, and payment companies using digital assets, will be required to register with the Bank of Ghana and obtain licenses to legally operate [1][3][5]. The Act is designed to enhance transparency, accountability, and consumer protection in the digital asset space by enforcing requirements such as anti-money laundering (AML), know your customer (KYC) compliance, cybersecurity audits, and minimum capital thresholds [3][5].
For companies like Yellow Card, a major player in Ghana's digital asset sector, this regulatory development represents formal recognition but with new compliance responsibilities [1][2]. Yellow Card, which operates in 20 African markets and holds licenses in jurisdictions such as South Africa and Botswana, will need to register with the Bank of Ghana by the mid-August 2025 deadline and subsequently comply with the licensing requirements once the Act is enacted [1][2].
The Act also seeks to align Ghana's crypto regulations with global standards and mitigate risks related to fraud, money laundering, and financial instability [1][3][5]. The Bank of Ghana plans to establish a dedicated digital assets unit to enforce the new measures, ensuring compliance and maintaining the integrity of the digital asset ecosystem [4].
Yellow Card's Director notes that many FinTech companies have spent the last few years preparing for this shift by enhancing compliance protocols and risk management systems [2]. The firm is also pushing for innovation-supportive policies such as regulatory sandboxes and research incentives, ensuring that the regulatory environment fosters growth and development in the digital asset sector [7].
The implementation of these rules is dependent on the passage of the Virtual Asset Service Providers Act by Parliament [3][5]. Stakeholders are optimistic that the proposed cryptocurrency regulation in Ghana will position Ghana as a digital finance hub in Africa, attracting investment and fostering innovation in the FinTech ecosystem [6].
Ghana's latest policy stance signals its intention to be at the forefront of this evolution, reflecting a broader continental trend across Africa as central banks grapple with how best to harness the opportunities of digital finance while managing associated risks [8]. The defined legal framework is expected to boost investor confidence, encourage responsible business practices, and eliminate bad actors from the ecosystem [3][5].
In conclusion, Ghana’s Virtual Asset Service Providers Act is a significant step towards regulating and integrating digital assets into the country’s financial system. The Act promotes innovation alongside consumer protection, affecting companies like Yellow Card by requiring registration, licensing, and compliance with regulatory standards [1][3][5]. This move could legitimize their operations, enhance consumer trust, and potentially facilitate broader adoption of digital assets, while also imposing stricter oversight to ensure security and financial integrity [3][5].
Companies like Yellow Card, operating in the digital asset sector of Ghana, will need to register with the Bank of Ghana and comply with the new licensing requirements under the Virtual Asset Service Providers Act, which aims to formalize and regulate the digital asset ecosystem [1][2]. This regulatory development, designed to enhance transparency, accountability, and consumer protection, also represents an opportunity for attracting investment and fostering innovation in the FinTech ecosystem, as Ghana positions itself as a potential digital finance hub in Africa [6].
