SEC warns influencers as Ghana tightens rules on crypto promotion under new VASP law
The Securities and Exchange Commission has issued a warning to celebrities and social media influencers against promoting cryptocurrencies and other virtual assets without proper authorisation, as Ghana prepares to enforce its newly passed Virtual Asset Service Providers law.
The caution comes as the legislation, which is awaiting presidential assent, seeks to introduce a comprehensive regulatory framework for cryptocurrency and virtual asset activities, while strengthening anti money laundering and counter terrorism financing controls within Ghana’s fast growing digital finance space.
Speaking at the maiden National Virtual Asset Literacy Programme for Virtual Asset Market Operators, the Deputy Director General of the SEC in charge of Finance, Mensah Thompson, said the highly volatile nature of virtual assets makes strict oversight of advertising, promotion and advocacy essential.
He stressed that only individuals and entities that are duly licensed and authorised would be permitted to engage in promotional activities related to cryptocurrencies and other virtual assets.
“We all know how volatile the virtual asset space is. And that’s why specific rules have been designed to guide advertisement, promotion, and advocacy. And so influencers who want to work in this space, please be reminded that there are rules concerning advocacy and influencing in the virtual asset space,” he said.
Mr Thompson warned that breaches of the rules would attract sanctions and urged influencers to familiarise themselves with the regulatory framework before engaging in any form of promotion.
“And only licenced and authorised persons will be allowed to engage in advocacy, advertisement, or promotion in the virtual asset space. And there are consequences for this breach. And so we want to send this message to you, that if you want to work in that space as an influencer, take steps to contact the SEC and the Bank of Ghana for the rules that guide that,” he added.
The SEC says the enforcement of the VASP law will help protect investors, enhance market integrity and promote responsible participation in Ghana’s digital asset market, particularly as interest in crypto continues to rise among young people and retail investors.
Regulators have also raised concerns about market manipulation schemes such as pump and dump operations, which are common in largely unregulated digital asset environments. In such schemes, promoters or influencers aggressively hype a token or coin, often using social media to create excitement and drive up its price. Once prices rise, the promoters sell off their holdings at a profit, causing the value to crash and leaving ordinary investors with significant losses. Authorities say tighter controls on promotion and advocacy are aimed at reducing the risk of such practices and protecting unsuspecting members of the public.
The warning from the SEC comes against the backdrop of Ghana’s parliament approving the Virtual Asset Service Providers Bill, which effectively legalises cryptocurrency trading and related activities in the country. The passage of the bill was announced by the Governor of the Bank of Ghana, Johnson Asiama, who said the new law would address central bank concerns about the widening and unregulated use of crypto as an alternative asset.
“With the passage of the bill, the country takes a step towards facilitating the licensing of crypto platforms and properly supervising activity,” Asiama said, adding that, “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 […] These are not just legal milestones; they are enablers of better policies, stronger supervision and more effective regulation.”
The central bank hopes the new framework will improve transparency and oversight, following reports that about 3 million Ghanaians, representing roughly 17 percent of the adult population, are involved in cryptocurrency trading. Estimates by Web3 Africa Group suggest that this group processed about 3 billion dollars worth of crypto transactions in Ghana in the year through June 2024, raising concerns about potential implications for management of the cedi.
Under the new law, the Bank of Ghana will act as the primary regulator with powers to license and supervise virtual asset service providers, including exchanges, wallet providers and custody services, while the SEC will share oversight in some areas. Although the legislation legalises crypto activities, regulators have stressed that it does not make cryptocurrency legal tender, with the cedi remaining Ghana’s sole legal tender.
Ghana’s move places it among a growing list of Sub Saharan African countries such as Kenya, South Africa and Ethiopia that have introduced regulatory frameworks for crypto, as the region continues to record strong growth in digital asset adoption.
