On Friday, July 21, Namibia’s authorities signed the Namibia Virtual Assets Act after receiving approval from its National Assembly. The law, published in the Gazette of the Republic of Namibia, will soon come into force, but the exact date is yet to be determined by the Ministry of Finance.
The new legislation is designed to provide a legal framework for crypto exchanges operating within the country. According to this bill, there will now be the Regulatory Authority in Namibia, with the power of licensing virtual assets service providers and supervising activities related to crypto. The law also aims at consumer protection, preventing market abuse, and money laundering.
Additionally, the law highlights that those crypto exchanges which do not comply with the regulations and do not have the proper registration may face penalties of 10 million Namibian dollars ($671,000) or even up to 10 years in jail.
Back in 2017, Namibia’s government banned the use of crypto within the state. However, this new law may be an indication of a little shift in the authorities’ opinion about digital assets.
Notably, the Namibia Virtual Assets Act 2023 became the first law in the country to lay out regulations for all activities related to cryptocurrency. Nevertheless, the country’s central bank, the Bank of Namibia, still refuses to consider cryptocurrencies legal tender, so using crypto to pay for goods and services may easily result in legal issues.
Learn more about crypto regulation around the world