IS BITCOIN LEGAL IN GHANA?
IS BITCOIN LEGAL IN GHANA?; Bitcoin is a digital asset that has taken the world by storm since its inception in 2009. It is a decentralized currency that operates on a peer-to-peer network without the need for a central authority. While many countries have embraced Bitcoin and other cryptocurrencies, some countries have been hesitant about their legality. In this article, we will discuss the legal status of Bitcoin in Ghana.
Evolution of Bitcoin in Ghana
Firstly, it is important to note that the Bank of Ghana (BoG) has not issued any specific laws or regulations regarding the use of Bitcoin or other cryptocurrencies. This means that technically, Bitcoin is not illegal in Ghana.
However, in 2018, the BoG issued a public notice warning the public against the use of cryptocurrencies, stating that they were not legal tender in Ghana and that individuals who invest in them do so at their own risk. The notice also warned financial institutions against facilitating transactions related to cryptocurrencies.
Despite the warning, Bitcoin and other cryptocurrencies continue to be traded in Ghana. The lack of specific regulations has allowed Bitcoin to thrive in the country, with many individuals and businesses accepting it as a form of payment.
It is worth noting that Ghana’s Securities and Exchange Commission (SEC) has taken steps to regulate the use of cryptocurrencies in the country. In 2019, the SEC issued a statement indicating that it was in the process of drafting regulations that would govern the use of cryptocurrencies in Ghana. The SEC also cautioned the public against investing in cryptocurrencies until the regulations were in place.
Since then, there have been no further updates on the SEC’s regulatory framework for cryptocurrencies in Ghana. However, the fact that the SEC is actively working on regulations for cryptocurrencies indicates that the government is not completely opposed to their use.
Bitcoin started getting adopted in Ghana around 2013-2014, when early adopters began to introduce the concept of digital currencies to the Ghanaian population. In those early days, there were only a few individuals and businesses in Ghana that were interested in Bitcoin and other cryptocurrencies. However, with the growing popularity of Bitcoin and the increasing number of people who are interested in digital currencies, the adoption rate has been steadily increasing in Ghana over the past few years.
The adoption of Bitcoin in Ghana has been on the rise since around 2015. One of the earliest signs of Bitcoin adoption in Ghana was the launch of the first Bitcoin ATM in the country in December 2018. The ATM was installed in the capital city, Accra, by a local blockchain company called BlockXAfrica. The ATM allowed users to buy Bitcoin, as well as Ethereum, Litecoin, and Bitcoin Cash using cash. The launch of the Bitcoin ATM was seen as a significant step towards the adoption and mainstream use of cryptocurrencies in Ghana. Additionally, there have been several Bitcoin and cryptocurrency events held in Ghana over the years, including conferences, workshops, and meetups, which further indicate the growing interest in and adoption of Bitcoin in the country.
Today, Bitcoin is becoming more mainstream in Ghana and there are a growing number of businesses that accept Bitcoin payments. Additionally, there are several local cryptocurrency exchanges and peer-to-peer trading platforms that allow Ghanaians to buy and sell Bitcoin with ease. The increased adoption of Bitcoin in Ghana can be attributed to several factors, including the increasing awareness and understanding of digital currencies, the ease of use and accessibility of Bitcoin, and the growing number of businesses and individuals that are embracing Bitcoin as a legitimate form of payment.
According to a report by Coin Dance, the weekly trading volume of Bitcoin in Ghana on the peer-to-peer platform LocalBitcoins was around 42 million GHS in January 2021. This suggests that there is a significant interest in Bitcoin trading in Ghana. It is important to note that the trading volume on other exchanges may be higher or lower than this figure.
Users in Ghana have always had the need to exchange their bitcoin for their local fiat from time to time, sometimes to take profits from investment and pay bills, other times out of absolute necessity. DartAfrica has proven to be one of the most sought-after platforms to perform crypto for fiat exchange in the country. Users can sell their Bitcoin and get fiat withdrawn to their local bank accounts instantly. When compared to other exchange platforms or conventional financial institutions, DartAfrica offers zero transaction fees, which is just one of the many potential advantages of using it. The platform also provides simple navigation and a user-friendly layout, as well as quick and secure transactions. This standout feature is what users look for when they need to exchange their crypto for fiat. To exchange crypto for fiat on DartAfrica:
How to exchange Bitcoin for Cedis
- Head over to their website to register in very few quick and easy steps.
- Next, log in to your account and click “Security” to create a transaction pin for authorizing withdrawals.
- Click on “Account Details” to set up your local bank account.
- Click on “Sell Coins”, and select the coin you wish to deposit. Enter the USD amount (min $20).
- Click “Sell Now” and a barcode (and wallet address) is provided for you to deposit the equivalent amount you wish to sell. Once the deposit is complete, you can monitor your transaction in the “Trades” section and after 2 block confirmations, the equivalent fiat is deposited in your account. This can be viewed on your “Dashboard”.
- Click “Withdraw funds” and enter the amount you wish to withdraw to the already set up account in step 3. Your local bank is credited instantly with no hidden charges.
In summary, while there are no specific laws or regulations governing the use of Bitcoin and other cryptocurrencies in Ghana, the public has been cautioned against their use by the BoG. However, the lack of specific regulations has allowed Bitcoin to thrive in the country, with many individuals and businesses accepting it as a form of payment. The SEC is in the process of drafting regulations for cryptocurrencies in Ghana, which indicates that the government is not completely opposed to their use.
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