Namibia’s National Assembly has reportedly passed a bill which aims to legalise and establish regulations for virtual assets such as cryptocurrency.
The Namibian, the country’s largest newspaper, has said that the bill now awaits being gazetted, after which the act will be implemented.
According to the Minister of Finance and Public Enterprises, Iipumbu Shiimi, the new law plays a crucial role in:
- Protecting consumer interests
- Addressing market abuse, and
- Reducing the risks of money laundering and terrorist financing related to virtual asset markets
“The aim of the legislation was to create a regulatory framework to protect consumers, and the risk of money laundering is mitigated,” Shiimi says.
As stated by the Bank of Namibia (BoN), individuals who own, use, or engage in virtual currency transactions in Namibia bear complete responsibility for their actions as virtual currency does not possess any legal tender status in the country.
According to Kazembire Zemburuka, spokesperson for the Bank of Namibia (BoN), virtual assets have the potential to facilitate financial inclusion, enhance the robustness and affordability of payment systems, and improve cross-border payments.
“When the associated risks that come with innovations such as virtual assets in the financial system are better managed, the bank will make the necessary assessments and pronounce itself on their acceptance,” he says.
In April 2022, BoN Governor, Johannes Gawaxab, said:
“The number and value of cryptocurrencies have surged, raising the possibility of a financial world operating outside the control of governments and central banks. There is thus a need for central banks to have a clear digital currency agenda to reinforce Central Bank authority over money and maintain control over the payment system.”
The law is expected to introduce a regulatory body to take on the responsibility of granting licenses to virtual asset service providers and overseeing, supervising, and monitoring activities associated with the provision of virtual asset services.
According to the legislation, individuals or entities that engage in virtual asset services without proper registration with the regulatory authority may be subject to penalties, including fines of up to N$10 million (~$533,000), imprisonment for a maximum of 10 years, or both.
Should the law be passed, Namibia will join South Africa and Nigeria as the African countries to have introduced cryptocurrency regulation.
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