Crypto-funded debit card in Ghana

Bank of Ghana (BoG): The central bank is the most active and vocal regulator regarding cryptocurrencies. It is responsible for monetary policy, currency issuance, and the regulation of payment systems and financial institutions.

Not Legal Tender: The Bank of Ghana has repeatedly stated that cryptocurrencies are not legal tender in Ghana. The only legal tender is the Ghana Cedi.

Unlicensed and Unregulated Trading: The BoG has issued strong warnings against individuals and institutions participating in or facilitating cryptocurrency trading. These warnings emphasize that such activities are largely unlicensed and unregulated, carrying significant risks.

Example BoG Warning: In March 2018, the BoG issued a public notice titled "Notice to Banks, Other Financial Institutions and the General Public on Virtual Currencies." It explicitly stated: "The Bank of Ghana wishes to notify the general public that cryptocurrencies such as Bitcoin are not licensed in Ghana. The public is therefore strongly cautioned to desist from engaging in any form of cryptocurrency transactions."

No Official Support for Virtual Asset Service Providers (VASPs): There is no clear framework for the registration or licensing of VASPs, making it difficult for legitimate crypto businesses to operate formally.

Exchanges Operating in a Grey Area: Due to the lack of specific licensing, any cryptocurrency exchanges operating within Ghana are doing so in a legal grey area and are likely considered unauthorized by the BoG if they facilitate transactions involving the Ghana Cedi or offer services to the general public.

Anti-Money Laundering Act, 2020 (Act 1044): This is the most crucial piece of legislation. It provides the legal framework for combating money laundering and terrorist financing in Ghana, incorporating international standards, including those related to targeted financial sanctions. VASPs, by their nature, would fall under the broader definition of financial institutions or designated non-financial businesses and professions (DNFBPs) if they are involved in activities like exchange, transfer, or safekeeping of virtual assets.

Payment Systems and Services Act, 2019 (Act 987): While not directly referencing cryptocurrencies, this Act governs payment systems and services in Ghana and grants the Bank of Ghana broad oversight. Should crypto services be deemed to fall within the ambit of payment services, they would be subject to BoG regulation.

Screen: Conduct ongoing screening of all customers (individuals and entities) and beneficial owners against the UNSC Consolidated Sanctions List.

Freeze Assets: Immediately freeze any virtual assets or funds belonging to, or controlled by, designated individuals or entities.

Prohibit Transactions: Cease all transactions with designated individuals or entities.

Report: Report any hit or frozen assets to the FIC without delay.

Extra-territorial Reach: OFAC sanctions have a broad extra-territorial reach. While not directly binding Ghana as a sovereign nation, they apply to:

Screen: Screen customers and transactions against OFAC's Specially Designated Nationals (SDN) List and other relevant sanctions lists (e.g., SSI List, CAATSA-related lists).

Electronic Money (E-Money) / Payment Tokens:

Act 987, Section 156 defines "electronic money" as "monetary value represented by a claim on an electronic money issuer, which (a) is stored electronically on an instrument or device; (b) is issued on receipt of funds for the purpose of making payment transactions; and (c) is accepted by a person other than the electronic money issuer."

Most fiat-backed stablecoins would fit this definition if they were to operate legally within Ghana's payment ecosystem.

Act 987, Section 10(1): An electronic money issuer "shall hold an equivalent amount of funds in a dedicated trust account with a bank."

L.I. 2416, Regulation 15: Elaborates on the types of assets that can back e-money (e.g., highly liquid, low-risk assets) and requires regular reporting to the BoG. The e-money must be fully backed at all times.

For E-Money: Issuers of electronic money are required to be licensed by the Bank of Ghana.

Act 987, Section 3: "A person shall not carry on a payment service or issue electronic money unless that person has been issued with a licence by the Bank of Ghana."

Applicability: If cryptocurrencies are treated as "chargeable assets" (similar to shares, land, etc.), then the disposal of crypto for a profit would attract Capital Gains Tax.

Tax Rate: The Income Tax Act, 2015 (Act 896) stipulates a Capital Gains Tax rate of 15% on the net gains derived from the realization of chargeable assets.

Goods/Services Purchased with Crypto: If cryptocurrency is used to purchase taxable goods or services, the VAT would apply to the goods or services themselves, denominated in Ghana Cedis at the time of the transaction, not to the crypto used as payment.