Namibia Introduces Regulations for Crypto and Digital Assets

Crypto Currency and Digital Assets in Namibia

Namibia has joined the list of African countries that have embraced crypto currency and digital assets after the National Assembly approved a bill. The legislation, which was passed in the lower house of parliament on June 22, seeks to regulate digital assets, crypto currency and virtual asset service providers (VASPs) in the country.

The main purpose of the bill is to ensure consumer protection, prevent market abuse and reduce the risks of money laundering, terrorism financing and proliferation activities associated with crypto currency markets. It also covers related issues.

According to local media reports, the bill is awaiting publication before it comes into effect. Iipumbu Shiimi, the Minister of Finance and Public Enterprises, reportedly mentioned the creation of a regulatory body to supervise and grant licenses to VASPs in Namibia.

Cryptocurrency in Namibia

The Bank of Namibia has declared that cryptocurrencies do not have legal tender status in the country, and those who do not comply could be subject to penalties of up to 10 million Namibian dollars ($671,572) and a 10-year prison term. Kazembire Zemburuka, the Bank of Namibia’s director of strategic communications and international relations, also stated that the bank is still assessing the risks associated with innovations like virtual assets before deciding on their acceptance in the financial system.

In 2017, the bank made it clear that virtual currency exchanges have no place in Namibia under its current laws, and that they were strongly against the use of cryptocurrencies as a method of payment for goods and services.

Despite the Bank of Namibia’s stance on crypto currency, the crypto market today is still booming, with crypto now being integrated into web 3.0 and media networks such as crypto currency reddit and media crypto.