Ghana Tightens Law on Stablecoin Promotions

The Bank of Ghana (BoG) has sent out a strong warning to stop the illegal advertising of virtual assets and stablecoin products. This comes after some virtual asset service providers (VASPs) started using billboards in Accra and other areas to promote their services. The BoG says this kind of public promotion is against the rules.

The central bank made it clear that no VASP can do mass marketing or public ads for virtual assets. This rule applies even to companies in the BoG and Securities and Exchange Commission (SEC) sandboxes. These are special testing areas where new financial ideas are tried out under watch. VASPs can only advertise if they get direct permission from both the BoG and SEC.

Virtual asset advocacy is now a controlled activity. It falls under the new Virtual Asset Service Providers Act of 2025, also known as Act 1154. Any company doing this work must register with the BoG and SEC. The law has special rules for companies already operating. They can apply for a license or registration once the system starts working fully. This gives them time to switch to the new setup.

Ghana Tightens Law on Stablecoin Promotions

Ghana is a big player in cryptocurrency in West Africa. It is one of the main spots for crypto use in Sub-Saharan Africa. About three million Ghanaians, or roughly 9% of the people, have used crypto. Between July 2023 and June 2024, their transactions added up to more than $3 billion. Many use these digital assets to send money home from abroad. They also use them to protect against ups and downs in the value of the Ghanaian cedi, the local currency.

This rise in crypto use has made new rules necessary. People in Ghana are turning to stablecoins and other virtual assets more often. Stablecoins are digital money meant to hold a steady value, often linked to the US dollar. As more Ghanaians buy, sell, or trade them, the government wants to keep things safe and orderly. Unchecked ads could trick people or lead to risks like scams or money loss.

The BoG is taking quick action. It has told all VASPs with billboards or other public ads to take them down right away. This includes big signs on roads and streets across the country. The bank shared this in a public notice to make sure everyone knows.

“Failure to comply will result in severe sanctions against the offending service providers,” the BoG warned. This means heavy fines, shutdowns, or other punishments for those who ignore the order. The goal is to protect everyday Ghanaians from false promises in crypto ads.

Experts say this move shows Ghana is serious about regulating the fast-growing crypto space. The country wants to balance innovation with safety. VASPs must now follow the law step by step. First, they register under Act 1154. Then, they wait for approval before any big promotions.

For now, quiet operations are allowed under the transitional rules. But flashy billboards and public hype are off-limits. This crackdown highlights how African countries are handling the crypto boom. Ghana joins others in Sub-Saharan Africa to set clear boundaries.

Ghanaians who use crypto should stay informed. Check official sources like the BoG website for updates. Only deal with licensed providers once the system is ready. This way, remittances and hedges against cedi swings can continue safely.

The BoG’s action sets a strong example. It aims to build trust in virtual assets while cutting risks. As the licensing system rolls out, more details will come. For VASPs, time is short, remove those ads now to avoid trouble.

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