ENSIGN TRADING

The Virtual Asset Service Providers Act, 2025 (formerly the Bill), has been passed by Ghana’s Parliament and signed into law by President Mahama, establishing a comprehensive regulatory framework for virtual assets and service providers (VASPs) in Ghana. This directly impacts Binance, a centralized crypto exchange, and its users (traders) in the country. Below is a summary of the key points from the Act that affect Binance crypto traders, based on its provisions, definitions, and implications.
1. Requirement for Licensing and Registration
• Binance falls under “Virtual Asset Exchanges and Trading Platforms” in the Act’s Schedule (a centralized system facilitating crypto trading, custodial services, trade execution, token listings, and order books). This requires a licence from the Securities and Exchange Commission (SEC).
• Additional services Binance offers, such as custodial wallets or transfers, may also require licences from the Bank of Ghana (BoG).
• Non-Ghanaian companies like Binance can qualify but must register as an external or non-Ghanaian company under the Companies Act, 2019 (Act 992), and comply with local office requirements, fit-and-proper checks for owners/officers, adequate capital, cybersecurity, and AML measures.
• Without a licence, Binance cannot legally provide services “in or from” Ghana, potentially leading to service restrictions for Ghanaian users (e.g., IP blocks or account suspensions).
2. Transitional Provisions for Existing Providers
• Providers like Binance operating before the Act’s commencement must apply for a licence, registration, or waiver within 90 days of the Act coming into force (likely late December 2025, based on recent signing).
• Failure to apply could result in enforcement actions, such as business shutdowns or asset freezes.
3. Consumer Protections for Traders
• Licensed platforms must implement measures like clear risk disclosures, fair advertising, data protection under the Data Protection Act, 2011 (Act 843), whistleblowing policies, and business continuity plans.
• Traders benefit from safeguards against fraud, misleading info, and losses (e.g., stop-loss tools and complaint resolution). This reduces exposure to unregulated risks, aligning with FATF standards for AML, terrorism financing, and proliferation prevention.
• Unlicensed use (if Binance doesn’t comply) leaves traders without these protections, potentially voiding recourse in disputes.
4. Prohibitions and Penalties
• Providing unlicensed services is prohibited, with penalties including fines of 20,000–1,000,000 penalty units (equivalent to significant sums, e.g., up to millions of Ghanaian cedis), imprisonment (6 months–10 years), or both.
• Regulatory authorities (SEC, BoG) can impose administrative penalties, seize/freeze assets/wallets, or conduct inspections.
• Traders aren’t directly penalized for using unlicensed platforms, but it exposes them to higher risks (e.g., asset loss without oversight) and could indirectly affect access if enforcement targets user funds tied to illicit activities.
5. Impact on Trading Activities
• The Act legalizes crypto trading (buying, selling, holding) but only through regulated platforms, promoting stability amid Ghana’s high adoption (3.1 million users, 29th globally).
• For Binance users: Expect potential KYC enhancements, local fiat ramps (e.g., GHS pairs), or restrictions if unlicensed. Peer-to-peer (P2P) via Binance may shift to regulated “off-exchange” services.
• Broader ecosystem: Encourages innovation but bans high-risk features (e.g., under-collateralized loans without approval), potentially limiting some Binance products.
6. Current Status and Implications
• As of December 30, 2025, the Act is in force. The BoG conducted a baseline VASP registration in July 2025 to map the sector.
• No public confirmation of Binance’s licence status yet; all VASPs must now apply or register. If Binance secures one, it enhances legitimacy and safety for traders. If not, it may exit or limit Ghanaian access, pushing users to local licensed alternatives.
• This aligns with global trends (e.g., FATF compliance ahead of Ghana’s 2026 evaluation), potentially boosting confidence but requiring traders to verify platform compliance via SEC/BoG registers.
Overall, the Act shifts Binance trading from an unregulated “gray area” to a protected, accountable space, but compliance is key. Traders should monitor SEC/BoG announcements for licensed providers and consider diversifying to compliant platforms to avoid disruptions. For personalized advice, consult a financial regulator or legal expert in Ghana.

President John Dramani Mahama has signed the Virtual Asset Service Providers (VASP) bill into law, formally ushering Ghana into a regulated virtual assets ecosystem and marking a significant milestone in the country's financial sector development.
This was contained in a statement shared on Facebook by the Deputy Director-General of the Securities and Exchange Commission, Mensah Thompson, following the passage of the bill by Parliament after an extensive consideration process.

The new law provides a legal framework for the use, trading and provision of services related to virtual assets, including cryptocurrencies, effectively bringing activities in the digital assets space under regulatory oversight.

With the law now in force, the Securities and Exchange Commission and the Bank of Ghana are expected to play central roles in supervising and regulating virtual asset service providers, a move aimed at strengthening investor protection, market integrity and financial stability.
"The Bill among other things legalizes the usage, trading and provision of service in the virtual assets (including cryptocurrencies) space.

"The SEC and the Bank of Ghana wishes to

congratulate His Excellency the President, The Minister for Finance, the Governor of the Central Bank and the Director General of the SEC for their foresight in moving Ghana an inch closer towards the next phase of global finance and inclusion.

"Special thanks to VASP market operators including the big exchanges and traders who made immense contributions towards the bill and most important to the Chairman of the Finance Committee of Parliament the Hon Isaac Adongo for his enormous directions and support through out the legislation process," Mensah Thompson wrote on Facebook.
The statement acknowledged the role of key
stakeholders, including the Presidency, the Ministry of Finance, the Bank of Ghana, Parliament and industry operators, in advancing the legislation. It also highlighted the bipartisan support the bill received in Parliament and the technical contributions from staff of the SEC and the central bank.
The enactment of the VASP law is seen as part of Ghana's broader efforts to align its financial system with global trends in digital finance, promote innovation and expand financial inclusion within a clear and robust regulatory framework.

The Governor of the Bank of Ghana, Dr Johnson Pandit Asiama, has announced that cryptocurrency trading has been legalised in Ghana following the passage of the Virtual Asset Service Providers Bill, 2025, into law.

He explained that the new legislation, commonly referred to as the crypto law, provides a formal regulatory framework to supervise virtual asset activities and manage the risks associated with digital currencies.

Dr Asiama said the move ends uncertainty surrounding crypto transactions, while allowing the authorities to enforce oversight and consumer protection across the country.

Speaking at the annual Nine Lessons, Carols and Thanksgiving Service of the Bank of Ghana at the Bank Square in Accra on December 19, the Governor stressed that the law was a key step towards stronger regulation, improved supervision and a more resilient financial system.

"Effectively, virtual assets trading is now legal and no one is going to be arrested for doing crypto, but we now have the framework to manage the risks involved," he said.

On consumer protection, Dr Asiama stated that the legalisation of cryptocurrency trading does not amount to a free for all, but rather the introduction of firm rules to protect consumers and the financial system.
He said the new law empowers the Bank of Ghana to license, supervise and monitor entities operating in the digital asset space.
According to him, the absence of regulation in the past exposed users to fraud, money laundering and systemic risks, which the new framework seeks to address.
What this means is that now we have the framework to manage it and to manage the risks that can involve that kind of activity," he said.
He added that systems were being put in place to ensure transparency, accountability and compliance as the sector grows.
Dr Asiama said the crypto law was also intended to support innovation and expand financial inclusion, particularly among young people and technology driven entrepreneurs.
He noted that many Ghanaians, especially the youth, were already actively involved in digital assets despite the previous legal uncertainty.
By formalising the sector, he said Ghana could now harness the benefits of blockchain technology while limiting its downsides.
He stressed that regulation would help attract credible investors and fintech firms into the country, create jobs and support economic diversification.
"These are not just legal milestones; they are enablers of better policies, stronger supervision and more effective regulation," he stated, adding that innovation must thrive within a safe and well governed financial environment.
Touching on financial stability, the Governor said the passage of the crypto law, alongside amendments to the Bank of Ghana Act, reflects lessons learned from past economic shocks and the need to safeguard institutional credibility.
While welcoming the progress made, he cautioned that risks have not disappeared and called for vigilance as the country operates in an uncertain global economic environment.
"The progress gives us room to move, but it also calls for responsibility and vigilance," he said.
He assured the public that the central bank remains committed to maintaining stability while supporting innovation in the financial sector.
On the amendments to the Bank of Ghana Act, Dr Asiama said the changes were aimed at preventing a recurrence of the domestic debt exchange and governance lapses that characterised the 2022 crisis.
He explained that the revised law strengthens the central bank's independence, governance structures and operational safeguards to protect the economy and investors.
"The amendments we have made ensure that the kind of debilitating actions we saw in 2022 will never happen again," he said.
The annual Nine Lessons, Carols and Thanksgiving Service was attended by current and former staff of the Bank of Ghana, heads of banks and other financial institutions.
Among those present were a former Minister of Finance, Seth Terkper; the Chief Executive Officer of the Ghana Association of Banks, John Awuah; the First Deputy Governor, Dr Zakari Mumuni; and the Second Deputy Governor, Matilda Asante Asiedu.
The service was held on the theme "Oh, give thanks to the Lord, for He is good! For His mercy endures forever".
The Founder and General Overseer of Action Chapel International, Archbishop Nicholas Duncan Williams, who led the exhortation, encouraged Ghanaians to cultivate the habit of gratitude.
"Showing gratitude guarantees progress in life," he said.