Bank of Ghana’s Directive on Unauthorized Digital Wallets
In a significant regulatory move, the Bank of Ghana has mandated that all financial institutions under its jurisdiction cease operations related to unauthorized digital wallets that facilitate foreign currency transactions on cryptocurrency platforms. This directive comes amidst rising concerns over the legality and authorization of such crypto services in the country.
Details of the Directive
As outlined in a directive issued on June 12, the central bank has identified that various cryptocurrency platforms currently operating within Ghana are providing wallet services in foreign currencies, most notably the U.S. dollar. These platforms have been integrating with local banking systems to maintain these services through traditional payment methods, including direct bank transfers and payment cards. However, the Bank of Ghana has underscored that these platforms lack the necessary approvals to operate such foreign-denominated services legally.
Legal Framework and Compliance
The core of the Bank’s concern relates to compliance with the existing legal framework, specifically referencing the Payment Systems and Services Act of 2019 and the Foreign Exchange Act of 2006. The central bank contends that any facilitation of foreign currency wallet services necessitates formal authorization, which the applicable crypto platforms do not possess. Therefore, any financial infrastructure supporting these unauthorized services is deemed illegal.
Immediate Actions Required
In its recent announcement, the Bank of Ghana has outlined that the order applies immediately to a wide range of financial entities, including banks, specialized deposit-taking institutions, electronic money issuers, and payment service providers. These institutions are required to terminate any arrangements that contribute to the funding and operation of these unauthorized fiat wallet systems. The central bank has warned that institutions providing services like banking, payments, or settlement related to these crypto wallets must take swift action to end their support.
Consequences of Non-Compliance
Failure to comply with this directive will subject the offending financial institutions to potential supervisory or enforcement measures by the regulator. The Bank also highlighted that it has established a dedicated inquiry channel through its virtual asset desk for financial entities seeking to navigate compliance or registration with national standards.
Future Regulatory Framework
This comes at a time when Ghanaian authorities are also working on a new regulatory framework through the Virtual Asset Service Providers Act of 2025, aiming to provide a clear legal structure for the fast-evolving digital asset landscape in the country.
