The Bank of Namibia (BoN) (Which is the Central Bank of Namibia) has granted provisional authorizations to four entities to offer payment services and virtual asset services.
Among them,
- Mindex Virtual Asset Exchange (Pty) Ltd. and
- Landifa Bitcoin Trade CC
have been approved to operate as virtual asset service providers for a six-month period.
During this time, these companies will establish their operations, acquire the necessary equipment, and implement software to facilitate services such as cryptocurrency trading, exchanges, and ATMs.
According to Kazembire Zemburuka, the Bank of Namibia’s spokesperson, these businesses have not yet been authorized to engage with the public.
“Only after six months do they get final approval.
In the meantime, they must hire their people and put infrastructure in place. If they are ready before the six months, the bank can inspect their setup and once approval is granted, they can engage the public,” he said.
Namibia is one of the leading countries on the continent for crypto regulation. As reported by BitKE, tThe Virtual Assets Act of 2023 was introduced to combat money laundering and grant the Bank of Namibia (BoN) regulatory oversight over virtual asset services.
REGULATION | The Namibian 🇳🇦 Government Officially Gazzettes the Virtual Assets Act 2023 into Law to Regulate Virtual Asset Service Providers
The Namibia Virtual Assets Bill is now a law after its gazzettment. Namibia now joins South Africa 🇿🇦 and Nigeria 🇳🇬as the African… pic.twitter.com/yoJZxzofd2
— BitKE (@BitcoinKE) July 27, 2023
One of the primary objectives of the law is to guarantee the safety and well-being of consumers while also safeguarding against market exploitation and reducing the chances of money laundering and funding terrorism.
However, the Bank of Namibia, the country’s central bank, continues to say that cryptocurrencies will not be considered legal tender within the nation.
Economic analyst, Josef Sheehama, views the Bank of Namibia’s recognition of cryptocurrencies and virtual asset service providers as a positive step for the country’s financial sector.
According to Sheehama, by regulating cryptocurrencies in Namibia, the Bank of Namibia is enhancing the security of cryptocurrency transactions while also encouraging more participation in the sector.
“Namibia must seize the numerous opportunities this innovative technology offers in order to promote prosperity and economic growth. Because of this revolution, cryptocurrencies are now a significant part of the future of international trade,” he said.
Sheehama believes this move could ignite the Fourth Industrial Revolution as these businesses primarily merge information technology with finance, driving innovation in the sector.
“Today’s world is changing faster than ever before. Companies need to respond to their changing customers and competitive landscape through digital transformation. Businesses need to be agile,” he noted.
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