Namibia signs crypto exchange regulation bill into law

The Namibian government officially signed a law to regulate Virtual Asset Service Providers operating in the country last week, reversing its original 2017 decision to .

On July 21, the VASP-regulating was inserted into the Gazette of the Republic of Namibia after previously being on July 6 and signed by President Hage Geingob on July 14.

The bill called the Namibia Virtual Assets Act 2023 aims to assign a regulatory authority to supervise crypto exchanges in the country. It is the first law laying out how the country should regulate cryptocurrency-related activities.

It will into force at a date determined by Namibia’s Ministry of Finance.

Among the top aims of the law is to prevent market abuse and mitigate the and the financing of terrorism.

Non-compliant providers could reportedly face penalties of up to 10 million Namibian dollars ($671,000) and 10 years in prison. The country’s central bank, the Bank of Namibia, maintains its position that cryptocurrencies will not hold legal tender status in the country.

Namibia’s legal U-turn started in May 2018 when the Bank of Namibia its original decision to ban cryptocurrency exchanges.

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Earlier this month, South Africa’s financial regulator announced that all cryptocurrency exchanges in the country will be by the end of 2023 in order to continue operations.

Other African nations that have passed cryptocurrency laws include Botswana, Kenya, Mauritius and Seychelles. The Central African Republic made Bitcoin () legal tender in April 2022, however, that legislation was less than 12 months later.

Cameroon, Ethiopia, Lesotho, Liberia, Republic of the Congo, Sierra Leone, Tanzania and Zimbabwe are among the African countries to have enforced a ban on cryptocurrencies,  to the International Monetary Fund.

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