As Ghana prepares to bring virtual assets like cryptocurrencies under formal regulation, banking and financial consultant, Dr. Richmond Atuahene, has outlined eleven key recommendations for regulating Ghana’s growing digital asset space.
Dr. Atuahene’s recommendations embrace a hybrid approach that offers a roadmap that balances innovation, consumer protection, and financial stability.
The recommendations from the banking and financial expert come at a time when the Bank of Ghana has announced that all Virtual Asset Service Providers (VASPs) must register by August 15, 2025, as part of a broader push to regulate digital assets through a new law expected in September 2025.
In a research paper on the subject titled “Pathways to the financial regulation of virtual assets (crypto-assets) ecosystems in Ghana: A Case for Hybrid Financial Regulatory Approaches” copied to The High Street Journal, Dr. Atuahene argued that Ghana cannot rely on the old rules to regulate the new financial space tilting towards virtual assets such as cryptocurrency.
He therefore proposes that the quest to formally bring virtual assets under regulation must consider the following recommendation;
Combine Principles-Based and Risk-Based Regulation
Dr. Atuahene urges regulators to adopt a hybrid approach, blending principles-based regulation, which gives credence to outcomes, not strict rules, with risk-based regulation, which also targets resources where the risk is greatest.
This approach, he says, will encourage innovation, offer flexibility, and ensure that regulators are not wasting time on low-risk activities. It also aligns with global best practices and can evolve alongside the fast-changing crypto space.
Choose the Right Legal Framework for Ghana
To bring order and clarity, Ghana must adopt a legally sound and comprehensive framework. Dr. Atuahene proposes five possible options:
Full legal reform: Create a dedicated law covering licensing, supervision, sanctions, and enforcement.
Targeted legal amendments: Amend existing laws, then issue detailed regulations under those new provisions.
Issue regulations without new laws: Quicker, but only viable if regulators already have the authority.
Use exemptions: Selectively exempt crypto firms from outdated rules, though this offers little legal certainty.
Ban crypto entirely: Although not advisable, as it would stifle innovation and push activities underground
He emphasizes that comprehensive reform, though slower, will offer the clearest and most enforceable framework.
Establish Baseline Regulatory Standards and Best Practices
Dr. Atuahene further recommends that Ghana clearly define standards for custody, transfers, AML/KYC compliance, consumer protection, and market integrity. He wants regulators to leverage technology to improve compliance and reporting.
He also calls for the development of interoperable systems and the creation frameworks for regulating “on-ramps” and “off-ramps” (where digital assets meet fiat currency).
Equip Regulators with the Right Tools and Powers
The banking consultant further emphasized the need for the Bank of Ghana and the Securities and Exchange Commission (SEC) to be equipped with adequate resources, skills, and legal authority to regulate this sector effectively. They must ensure regulation is proportional to the risks involved, guided by the principle of “Same activity, same risk, same regulation.”
Enforce Strong Governance Requirements
Crypto firms must be required to establish governance frameworks suited to their size and risk level. This includes clear leadership and accountability structures, defined lines of responsibility, and regular internal reviews.
Mandate Comprehensive Risk Management
VASPs must be required to implement comprehensive risk management systems, addressing all potential risks in their operations, including market volatility, fraud, and system failures.
This aligns with global financial sector practices and helps ensure consumer and market protection.
Improve Data Collection and Reporting
Regulators should compel firms to maintain systems for accurate data collection, secure storage, and timely reporting. This will enable better surveillance and more responsive regulation.
Regulate Multi-Function Crypto Platforms Holistically
Some crypto platforms act as exchanges, lenders, wallets, and investment hubs all at once. Dr. Atuahene calls on Ghana to regulate them not just function-by-function but also in terms of how their services interconnect.
This, he says, may require separating high-risk activities under law.
Build Regulatory Expertise
To keep up with fast-paced crypto innovation, Dr. Atuahene recommends that supervisors must understand the market thoroughly. This calls for investment in staff training, technical resources, and regular upskilling on digital assets and blockchain.
Conduct Continuous Risk Assessments
He further recommends regular sector-wide risk assessments to identify emerging threats to financial integrity. These will help regulators set clear supervisory expectations for managing liquidity and operational risks, especially in volatile market conditions.
Strengthen International Cooperation
Given the cross-border nature of crypto, Ghana must work closely with foreign regulators. This includes supervisory cooperation agreements, requiring foreign VASPs to establish local legal presence if they serve Ghanaians, and coordinating on enforcement actions.
Most regulations globally only focus on security tokens, but Dr. Atuahene insists that all types of virtual asset investors, including users of stablecoins, NFTs, and utility tokens, must be protected. The aim is to foster inclusive, responsible innovation that democratizes finance, rather than restricts it.
The Bottomline
Dr. Richmond Atuahene maintains that Ghana stands on the brink of a digital transformation in finance. He is convinced that these recommendations provide a thoughtful, evidence-based framework to shape regulation in a way that is pragmatic, protective, and progressive. If adopted, they could position Ghana as a regional leader in crypto regulation, unlocking innovation while keeping fraud and instability at bay.
