Ghana’s parliament has passed the Virtual Asset Service Providers Bill, legalizing cryptocurrency and establishing a framework for licensing platforms and supervising digital asset activity, Bloomberg reported.

The legislation comes as roughly three million Ghanaians, or 17 percent of the adult population, engage in cryptocurrency trading, raising concerns about the management of the cedi, the country’s official currency.

Crypto transactions in Ghana reached an estimated three billion US dollars in the year through June 2024, according to Accra-based Web3 Africa Group. By comparison, Nigeria accounted for 59 billion US dollars in trading during the same period, nearly half of sub-Saharan Africa’s total of 125 billion US dollars.

Bank of Ghana Governor Johnson Asiama said the law would bring “emerging activity within clear, accountable, and well-governed boundaries,” adding that regulatory oversight would lower banking costs, enhance customer experience, and support small and medium-sized enterprises and traders.

The legislation is designed to improve transparency, formalize the sector, and ensure that previously unregulated activity operates under a clear regulatory framework.