Namibia has joined other African nations in embracing cryptocurrencies and digital assets with the approval of a bill by the Namibian National Assembly. The bill which was passed on June 22, aims to regulate digital assets, cryptocurrencies and the providers of digital asset services within the country, signaling a positive outlook for the industry.
The purpose of the legislation is to establish a framework for licensing and regulating virtual asset service providers. It also aims to designate a regulatory authority responsible for supervising these providers and their activities.
The main objectives include ensuring consumer protection, preventing market abuse, mitigating the risks of money laundering, financing terrorism and proliferation activities associated with virtual asset markets. The law also covers incidental matters related to these objectives.
Screenshot of Namibia's Virtual Assets Bill. Source: Parliament of the Republic of NamibiaAccording to local media reports, the bill is now awaiting official publication before it can be put into effect. Iipumbu Shiimi, Namibia's Minister of Finance and Public Enterprises, reportedly mentioned the establishment of a regulatory body to supervise and grant licenses to virtual asset service providers in Namibia.
Non-compliant providers could reportedly face penalties of up to $671,572 (10 million Namibian dollars) in fines, a 10-year prison term, or both. However, it's important to note that the Bank of Namibia maintains its position that cryptocurrencies do not hold legal tender status in the country.
Kazembire Zemburuka, the Bank of Namibia's director of strategic communications and international relations, stated the Bank of Namibia's position, the reports said, indicating that once the associated risks of innovations like virtual assets are better managed, the bank will assess and make a decision regarding their acceptance within the financial system.
Related: South Africa to mandate crypto exchange licenses by end of 2023: Report
In 2017, the Bank of Namibia announced that it was strongly against the use of cryptocurrencies as a method of payment for goods and services. It stated that virtual currency exchanges have no place in the African country, under its decades-old law. It further affirmed that cryptocurrencies were without legal tender status in the country.
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