Ghana Needs Clear Legal Framework for Tokenised Markets

The growing use of digital tokens to represent real-world assets in Ghana requires a clear legal framework, reliable ownership records, and safeguards to protect investors. Financial technology and banking experts have highlighted the need for regulations to ensure the smooth operation of tokenised markets. This call for action comes as the use of digital tokens continues to increase, offering new opportunities for investment and financial inclusion. A well-structured legal framework is essential to prevent potential risks and ensure that investors are protected.

The concept of tokenisation has the potential to revolutionise the way assets are bought, sold, and owned in Ghana. It could enable small investors to purchase fractions of assets that were previously out of reach, such as government securities or real estate. For instance, a Ghanaian farmer could finance a warehouse through small digital investments, or a young investor could buy a fraction of a government security. This could lead to increased financial inclusion and more diverse investment opportunities.

The need for a clear legal framework was emphasised by experts who pointed out that the current regulatory environment is unclear. Without proper regulations, investors may be exposed to significant risks, including the potential loss of their investments. Furthermore, the lack of reliable ownership records and safeguards could lead to disputes and undermine trust in the system. A well-structured legal framework would help to mitigate these risks and ensure that investors are protected.

The Ghanaian government has been taking steps to create a favourable environment for financial technology and investment. Recent legislation, such as the Ghana Investment Promotion Authority Act, 2026 (Act 1173), the Development Finance Institutions Act, 2020 (Act 1032), and the Public Private Partnership Act, 2020 (Act 1039), has laid the groundwork for a diversified industrial economy. However, the lack of clear regulations for tokenised markets remains a significant challenge.

The introduction of tokenised markets could also have a positive impact on Ghana's economic growth. By providing new investment opportunities and increasing financial inclusion, tokenisation could help to drive economic development. Additionally, the use of digital tokens could reduce transaction costs and increase the efficiency of asset ownership and transfer.

Experts have noted that the coaching industry in Ghana is still in its teething stage, and there is a need for more research and development in this area. Similarly, the tokenisation of assets requires further research and development to ensure that it is implemented effectively. The EU-funded Gold for Good project has also highlighted the need for coordinated action to address critical governance, environmental, and livelihood challenges in the artisanal and small-scale gold mining sector.

The Business and Financial Times has noted that young entrepreneurs in Ghana face structural barriers in accessing the renewable energy sector, which is worth $10.8 billion. The introduction of tokenised markets could provide new opportunities for young entrepreneurs to access funding and participate in the economy. Key to this will be the development of clear regulations and safeguards to protect investors and ensure the smooth operation of tokenised markets.

Key points

• Experts call for clear regulations to protect investors in digital tokens.
• Tokenisation could increase financial inclusion and provide new investment opportunities.
• A well-structured legal framework is essential to prevent potential risks and ensure that investors are protected.