Namibia has approved a bill in the National Assembly to join other African countries in embracing cryptocurrencies and digital assets. The bill, which passed the lower house of Namibia's parliament on June 22, aims to regulate digital assets, cryptocurrencies and virtual asset service providers (VASPs ) in the country.
The legislation aims to create a framework for licensing and regulating VASPs. It also seeks to appoint a regulator to oversee these providers and their activities.
Key objectives include ensuring consumer protection, preventing market abuse, and mitigating the risks of money laundering, terrorist financing, and proliferation activities associated with digital asset markets. The law also covers incidental matters related to these obj ectives. According to local media reports, the bill is currently awaiting its formal publication to take effect. Namibia's Minister of Finance and Public Enterprises, Iipumbu Shiimi, reportedly mentioned the creation of a regulatory body to oversee and license VASPs in the country.
Non-compliant suppliers could reportedly face fines of up to 10 million Namibian dollars ($671,572) and 10 years in prison. However, the Bank of Namibia maintained its position that cryptocurrencies do not have legal tender status in the country.
In the report, Bank of Namibia Director of Strategic Communications and International Relations, Kazembire Zemburuka set out the bank's stance, saying that once the risks associated with innovations such as virtual assets are better managed, the bank will evaluate and take decisions on its acceptance within the financial system.
In 2017, the bank announced its strong opposition to the use of cryptocurrencies as a method of payment for goods and services. It said virtual currency exchanges had no status under the African country's decades-old laws.
