Hassan Maishera
TL;DR
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The Namibian government has signed its cryptocurrency exchange regulation bill into law.
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The government has reversed its previous ban on crypto exchanges.
Namibia Lifts Crypto Exchange Ban
The Namibian government has signed a law to regulate cryptocurrency exchanges operating in the country. The government signed the bill into law last week, reversing the ban it placed on crypto exchanges in 2017.
The Virtual Asset Service Providers (VASP) law was inserted into the Gazette of the Republic of Namibia last week. The bill was previously approved in Namibia’s National Assembly on July 6 before it was signed by President Hage Geingob on July 14.
The bill, dubbed, the Namibia Virtual Assets Act 2023, seeks to appoint a regulatory body to supervise the activities of cryptocurrency exchanges operating in the country. The Namibian government believes it is the first step towards regulating the broader cryptocurrency market in Namibia.
The law will come into effect at a date determined by Namibia’s Ministry of Finance. The law seeks to ensure consumer protection, prevent market abuse and reduce the risks of money laundering and terrorism financing using crypto exchanges.
Non-compliant Exchanges To Pay Heavy Fines
According to the law, providers that fail to comply with regulations set by the authorities will face penalties of up to $671,000 (10 million Namibian dollars) and 10 years in prison.
The Bank of Namibia, the country’s apex bank, continues to maintain that cryptocurrencies will not be regarded as legal tender at the moment.
This latest cryptocurrency comes a few weeks after South Africa’s financial regulator announced that crypto exchanges operating in the country would be required to obtain licenses by the end of the year if they are to continue operations.
Namibia joins Kenya, Botswana, Mauritius and Seychelles as the African countries to have passed cryptocurrency laws.
The Central African Republic followed El Salvador’s footsteps and made Bitcoin a legal tender in April 2022. However, the legislation was reversed a few months later.
