By Japhet Gana: Group Head, Transaction Risk & Financial Crimes, Yellow Card
In the past decade, our financial systems have become more digitally interconnected than ever before. Convenience and speed now come with a price: financial crime. From sophisticated money-laundering networks to cyber-enabled fraud rings, criminal actors are exploiting gaps in regulation and oversight. As traditional finance evolves, so too have the methods and opportunities for abuse, and nowhere is this more evident than in the digital asset space.
Cryptocurrency and other digital assets promised a more inclusive and efficient financial system. But without the right guardrails, innovation can inadvertently create new avenues for exploitation. Over the last several years, financial crime has grown alongside the digital economy. According to a Chainalysis report by July 2025 over $2.17 billion were reported stolen from cryptocurrency services. But behind these numbers are real people. Small businesses locked out of working capital after falling victim to crypto scams. Families losing savings to impersonation schemes. Young founders forced to shut down promising ventures because a single fraud incident wiped out their liquidity. Financial crime in digital assets is not abstract. It is personal, and its impact is often irreversible.
From darknet markets moving illicit funds to ransomware groups demanding payment in digital assets, criminals increasingly leverage digital currencies because of weak oversight, inadequate identity verification, and jurisdictional gaps in enforcement. It’s why anti-money-laundering (AML) and counter-terrorist financing (CTF) controls are not bureaucratic niceties, they are essential infrastructure for a functioning financial system. Regulation is not a “nice-to-have”; it’s the safeguard that separates legitimate innovation from systemic risk.
The Risk Landscape Gets Sharper as Digital Assets Grow
In the absence of clear rules, digital assets have often been described as the Wild West of finance, a frontier of opportunity with little accountability. Stories highlighting lost wallets and exchange hacks grab headlines, but the larger issue is deeper: when markets operate without enforceable standards for transparency and oversight, bad actors thrive.
The digital asset ecosystem can be a force for economic inclusion, especially in emerging markets across Africa. But that promise will always be limited if fear of fraud, theft, or criminal misuse overshadows the potential benefits. Regulation that prioritises financial safety protects consumers and strengthens trust in the financial system, trust that is fundamental for adoption at scale.
Regulatory Momentum: Kenya and Ghana Take a Stand
Recognising these risks, several African countries have moved beyond debate and taken decisive action. Two of the most important developments in the last year came from Kenya and Ghana, where comprehensive regulatory frameworks for digital assets were enacted. At a time when many developed markets are still struggling to reconcile innovation with enforcement, African regulators are proving that clarity is possible. These frameworks are not reactionary. They are deliberate, consultative, and built for long-term market health.
In Kenya, a new digital asset regulatory framework was formalised in November 2025, the Virtual Asset Service Providers Bill. This made the East African country one of the first in the region to clearly define licensing requirements, compliance expectations and supervisory oversight for Virtual Asset Service Providers (VASPs). This law was crafted, with major input and consultation from Yellow Card’s team, enabling innovation while ensuring that operators implement strong AML and CTF safeguards.
Similarly, Ghana’s Virtual Asset Service Providers Bill, 2025, which received president assent at the end of December 2025 marked a historic shift. For years, the digital asset market in Ghana had operated in a gray area – widely used by the public but lacking legal certainty. With the passage of the VASP Bill and receipt of presidential assent, cryptocurrency activities are now formally legalised and regulated. This framework assigns responsibility to multiple agencies – including the central bank, securities regulator, and financial intelligence unit – to monitor transactions, enforce identity verification, and prevent illicit flows. These laws are about more than legitimacy; they are about protecting individuals, businesses, and the broader financial system from abuse.
Why Regulation Matters: Financial Safety and Security Aren’t Optional
Financial crime isn’t just a compliance checkbox for multinational corporations – it’s a real threat that affects individuals, firms and economies. Losses from fraud and money laundering erode consumer confidence and divert capital away from productive use. Illegal activity distorts markets and can undermine the foundational trust people place in financial systems. In the digital asset context, unregulated exchanges and opaque operations amplify these risks.
Regulatory frameworks like those in Kenya and Ghana create what we call a “safe zone” – a space where innovation can thrive under clear standards that protect participants. Mandatory Know-Your-Customer (KYC) requirements ensure identities are verified. AML and CFT protocols detect and deter illicit flows. And coordinated oversight enables regulators and operators to combine on-chain analytics with traditional compliance tools to identify suspicious behaviour in real time.
A Global Operator’s Perspective: Yellow Card’s Commitment to Safety
At Yellow Card, our operations span across 34 markets, with a footprint in 20 African countries and strategic business relationships spanning Europe and the United States. This global reach means we interact with some of the most sophisticated regulatory regimes in the world. We don’t see financial safety and security as optional luxuries, they are prerequisites for operating responsibly at scale.
We have built risk and financial crime programmes that adhere to the highest standards. That includes robust identity verification, transaction monitoring, and real-time risk scoring. These systems are not theoretical; they are deployed daily to protect users and reinforce trust in the digital economy.
The Future Depends on Safe, Secure, Accountable Markets
As digital assets continue to integrate with traditional finance and everyday commerce, the stakes for financial integrity will only rise. Countries that lead with thoughtful regulation – rooted in transparency, enforcement and international cooperation – will unlock broader economic potential. Those that delay risk stagnating in uncertainty. The real question for policymakers is no longer whether to regulate digital assets, but how quickly and how well. Clear rules today prevent crises tomorrow. In a global market where capital moves instantly, jurisdictions that move decisively will define the future of digital finance.
Regulation that confronts financial crime head-on doesn’t stifle innovation – it enables it by eliminating fear and establishing a foundation of trust. For Ghana, Kenya, and other forward-thinking nations, the message is clear: the future of finance must be safe to be sustainable.
And when safety is non-negotiable, everyone benefits: consumers, businesses, and the economy at large.
