Namibia makes a U-turn in its stance towards cryptocurrencies.
The previous decision to prohibit cryptocurrency exchanges in Namibia has now been replaced by a new legislative course, marking a significant change in the country's crypto landscape.
The novel legal instrument, known as the Namibia Virtual Assets Act 2023, sets the foundation for the handling of cryptocurrency operations.
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The main goal of the Virtual Asset Service Provider (VASP) regulation is to fortify consumer protection, prevent market misconduct, and curb potential money laundering and terrorism financing risks.
Non-compliant service providers could face severe consequences, including a substantial fine of up to 10 million Namibian dollars (approximately $671,000) and a potential prison sentence of up to ten years.
The new regulation was inserted in the Gazette of the Republic of Namibia on July 21st after gaining the National Assembly's approval on July 6th. Further validation came from President Hage Geingob, who endorsed it on July 14th. Now, the law awaits an activation date from the Ministry of Finance.
Despite the legislation, Namibia's central bank, the Bank of Namibia, upholds its view that cryptocurrencies will not be recognized as legal tender within the country.
Earlier this month, the South African financial regulator obligated all cryptocurrency exchanges to secure licenses by the end of 2023 to continue their operations.
Meanwhile, several African countries, including Cameroon, Ethiopia, Lesotho, Liberia, the Republic of the Congo, Sierra Leone, Tanzania, and Zimbabwe, enforce an outright ban on cryptocurrencies.
The new regulatory measure in Namibia underscores a dramatic change in the nation's cryptocurrency outlook. It defines a new path forward in navigating the intricate and ever-evolving realm of digital finance.
