SEC bets on virtual assets to drive next phase of capital market growth

By Joshua Worlasi AMLANU

The Securities and Exchange Commission (SEC) says it is positioning virtual assets and financial technology as a key driver of the next phase of capital market development, with plans to begin licensing fintech firms operating in segments of the capital market by the end of 2026.

Speaking at the 3i Africa Summit on the theme; Ghana’s approach to virtual assets: Enabling innovation while safeguarding stability, Acting Deputy Director-General of SEC, Mensah Thompson, said his outfit is working with the Bank of Ghana (BoG) to develop a long-term framework for virtual assets as digital finance increasingly reshapes global financial markets.

The move comes as regulators seek to balance financial innovation with investor protection and market stability following years of macroeconomic volatility and tighter monetary policy measures by the central bank.

According to Mr. Thompson, improving macroeconomic conditions and stabilisation efforts by the central bank are already supporting renewed investor activity in domestic capital markets.

“The Bank of Ghana has had to take a number of difficult but necessary measures to help restore stability, strengthen confidence within the economy and bring the country back to a sustainable path,” he said.

He said stronger market participation and renewed investor interest are beginning to emerge after years of subdued activity. Ghana had not recorded an initial public offering since 2019, but has seen six major IPOs since last year, according to him.

Mr. Thompson said the SEC increasingly views virtual assets as part of a broader transformation in financial market infrastructure rather than a narrow cryptocurrency issue.

The regulator is studying applications including tokenised securities, digital bond issuance, blockchain-based settlement systems and digital investment distribution platforms.

“What we are witnessing is a fundamental shift in financial market architecture. From tokenised securities and digital exchanges to blockchain and mobile settlement systems and programmable finance, virtual assets are redefining how capital is raised, how ownership is represented and how transactions are executed,” he noted.

The SEC has established a virtual assets committee chaired by Mr. Thompson.  It works alongside the central bank to develop regulatory guidelines and implementation strategies.

The regulator has also introduced two innovation sandboxes — a virtual asset sandbox and a fintech sandbox — aimed at allowing firms to test products under regulatory oversight.

There are also plans to begin licensing fintech companies providing services across different areas of the capital market to improve liquidity, broaden participation and strengthen market infrastructure, he said.

The regulator said its approach would avoid both unrestricted liberalisation and outright prohibition of virtual assets. Instead, Ghana intends to pursue what Mr. Thompson described as “measured innovation” grounded in investor protection, sound governance and financial stability.

“We are choosing to lead responsibly, innovate prudently and regulate intelligently,” he added.

The SEC’s policy shift also reflects rising domestic interest in digital assets. The Acting Deputy DG disclosed that the regulator’s internal findings showed participation in virtual assets in Ghana had surpassed subscriptions into collective investment schemes, one of the country’s traditional retail investment channels.

“The implication was clear. Innovation was outpacing regulation,” he added.

Globally, the digital asset market has grown into an estimated US$3 trillion ecosystem, while tokenisation of assets including bonds, equities and real estate is projected by industry analysts to expand significantly over the coming years.

Locally, regulators see the sector as an opportunity to deepen financial inclusion, modernise market infrastructure and attract technology-driven investment.

However, the SEC acknowledged that the rapid pace of innovation also raises regulatory and operational risks requiring clearer rules, oversight capacity and coordinated supervision between financial authorities.

The regulator said ongoing consultations with market participants will shape the final framework as the country seeks to position itself as an early mover in Africa’s evolving digital finance landscape.

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