On-shore VASP 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.

Bank of Ghana Act, 2002 (Act 612) as amended by the Bank of Ghana (Amendment) Act, 2016 (Act 918): This Act grants the BoG its powers over monetary policy, the issuance of currency (the Ghana Cedi), and the regulation of payment systems. The BoG leverages these powers to assert that cryptocurrencies are not legal tender and to warn against their use in payment systems.

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."

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.

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.

Focus on eCedi: Ironically, while private cryptocurrencies are viewed with skepticism, the Bank of Ghana has been actively piloting its own central bank digital currency (CBDC), the eCedi. This initiative highlights the BoG's interest in digital currency innovation but under its direct control and regulatory oversight.

However, the Bank of Ghana (BoG), the primary financial regulator, has maintained a cautious and largely prohibitive stance on cryptocurrencies and virtual assets.

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Securities and Exchange Commission (SEC Ghana): While less explicitly involved than the BoG, the SEC would likely assert jurisdiction if crypto assets were classified as securities or investment products, especially concerning public offerings or investment schemes.

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.

VASP Requirements: VASPs operating in Ghana must:

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:

VASP Requirements: For VASPs in Ghana with any U.S. nexus or ambition to interact with the U.S. financial system:

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).

Block/Reject: Block property and interests in property of SDNs and reject prohibited transactions.

Report: Report blocked property and rejected transactions to OFAC.

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.

Self-Assessment System: Ghana operates a self-assessment tax system, meaning individuals and businesses are responsible for calculating and reporting their own taxable income and gains.

Inclusion in Annual Returns: All taxable income and gains derived from cryptocurrency activities must be declared in annual income tax returns (e.g., Form A for individuals, Corporate Income Tax Return for companies).

Record-Keeping: It is crucial for individuals and businesses involved in crypto to maintain meticulous records. This includes: