Namibia Moves Closer to Regulating Cryptocurrencies

• The Bank of Namibia does not recognize cryptocurrencies as legal tender. However, it does not restrict merchants from accepting them as a form of payment.
• Namibians who seek to invest in or trade in cryptocurrencies do so at their own risk.
• The new bill seeks to appoint a body to oversee crypto activities and license digital service providers.

The Namibian parliament has reportedly passed a bill seeking to legalize the use of cryptocurrencies and digital assets and also provide a regulatory framework for these assets. Iipumbu Shiimi, the nation’s finance minister, explained that the new policy is designed to help protect users and prevent market exploitation. According to officials, the bill will also help minimize the risks of money laundering, terrorism financing, and other related vices.

The law also aims to create a framework for approving and overseeing virtual service providers in Namibia. Additionally, it recommends appointing a regulatory body tasked with monitoring these providers and their operations in Namibia.

The bill will go into effect once it has been officially published, local sources reported. In addition, digital service operators will be required to apply for a license to operate. Companies that fail to comply with these laws might be hit with fines of up to 10 million Namibian dollars ($671,572) and a 10-year prison sentence.

Despite the popularity of cryptocurrencies in Namibia, the country’s central bank does not regard them as legal tender. The bank, however, said it would not prevent traders and merchants from accepting crypto as a form of payment.

Many believe that top finance officials in Namibia and crypto critics will gradually soften up and embrace digital assets.