Securities and Exchange Commission expands virtual asset sandbox to 20 firms

The Securities and Exchange Commission (SEC) has announced the expansion of its virtual asset regulatory sandbox, increasing the number of participating companies from 11 to 20. This strategic move is designed to enhance the regulation of digital asset services in Ghana as the commission prepares for the full implementation of the Virtual Asset Service Providers Act, 2025. By providing a controlled environment for fintech firms to operate under supervision, the SEC aims to foster financial innovation while ensuring robust investor protection and market integrity.

Dr. James Klutse Avedzi, the Acting Director-General of the SEC, highlighted that the expanded sandbox will provide the commission with critical insights into the evolving digital asset landscape. A primary focus of this phase is the exploration of tokenisation, with several pilot projects currently underway. One significant area of interest is the potential to formalise Ghana’s informal gold supply chain through digital tokens. This initiative, which includes firms such as GoldBod, seeks to bring greater transparency and security to the precious metals market by leveraging blockchain technology to track and trade gold assets more efficiently.

Participants in the sandbox that demonstrate strict adherence to compliance and regulatory standards will eventually be eligible to apply for full operational licenses. Beyond the management of the sandbox, the SEC is actively drafting regulatory requirements for tokenised securities and pursuing amendments to the Securities Industry Act. These legislative changes are intended to resolve existing classification challenges and create a comprehensive framework for the digital economy, positioning Ghana as a proactive leader in African financial technology regulation and digital asset management.