Crypto regulation in Africa is gaining pace as Kenya and Ghana introduce new laws and policy frameworks to govern the fast-growing virtual assets industry. The move reflects a wider continental shift as governments seek to balance innovation, financial inclusion, and risk management.
Kenya Introduces Clear Crypto Legislation
Kenya has taken a major step by passing the Virtual Asset Service Providers Bill. The legislation was approved by parliament in October and provides the country’s first comprehensive legal framework for cryptocurrency activities.
Under the new law, the Central Bank of Kenya will oversee the licensing of stablecoins and payment-related virtual assets. The Capital Markets Authority has been designated as the regulator for crypto exchanges and platforms involved in trading and investment services.
This framework brings clarity to an industry that has operated largely without formal oversight.
Ghana Releases Draft Crypto Policy
Following Kenya’s move, Ghana’s central bank released a draft policy paper outlining plans to regulate the virtual assets sector. The Bank of Ghana expects a full regulatory framework to be implemented by December.
The proposed structure assigns responsibilities across multiple institutions. The central bank will oversee payments and custody services. The Securities and Exchange Commission will regulate crypto trading and investment products.
A new body called the Virtual Assets Regulatory Office will be created to support supervision and enforcement.
A Growing Trend Across Africa
Kenya and Ghana join other African countries such as South Africa, Nigeria, and Mauritius in developing crypto-specific regulations. The push is driven by strong consumer adoption.
In Kenya alone, more than six million people now use cryptocurrency. This represents roughly ten per cent of the population. Stablecoins pegged to the US dollar are especially popular for cross-border trade and as protection against inflation and currency depreciation.
Taxation and Financial Inclusion Goals
Regulating crypto also opens the door for taxation. Many African countries have low tax-to-GDP ratios. Unregulated crypto activity risks further reducing government revenue.
By registering Virtual Asset Service Providers, authorities can track taxable events such as capital gains, transaction fees, and international transfers.
Supporters also argue that proper regulation will increase trust. Clear rules can reduce fraud, protect consumers, and encourage wider adoption of digital financial services. Blockchain technology is seen as a tool for improving access to finance for underbanked communities.
Risks and Regulatory Challenges
Despite its benefits, crypto adoption carries risks. Large unmonitored capital flows could weaken local currencies and disrupt traditional banking systems.
Experts warn that poor enforcement could allow fraud and market abuse to persist. Strong supervision will be essential to ensure consumer protection and financial stability.
