top of page
  • Writer's pictureJamal Saafir

African Country of Namibia Makes Way For Crypto Regulation

Namibia has joined the growing trend of countries recently laying out crypto regulation. As we have seen much development in this regard from China, Central and South America, and the UK; Namibia, Africa has joined the list.

As reported by BitKE, Namibia’s National Assembly has reportedly passed a bill which aims to legalize and institute regulations for virtual assets such as cryptocurrency. According to the country’s Minister of Finance and Public Enterprises, Iipumbu Shiimi, the law is anticipated to aid authorities in protecting the interests of consumers and to thwart market abuse.

In his remarks published by The Namibian, Shiimi also suggested that the law will enable authorities to deal with money laundering risks associated with digital assets.

“The aim of the legislation was to create a regulatory framework to protect consumers, and the risk of money laundering is mitigated,” the Minister reportedly said.

Shiimi further added that a governing body would be established to oversee and license the activities of virtual assets service providers (VASPs) in the country. Defaulting providers could pay up to N$10 million ($671,572 USD) in fines, a 10-year prison sentence or both.

The bill is now awaiting official publication before going into effect.

Despite these regulations, the Bank of Namibia maintains its position that cryptocurrencies have no legal tender status in the country.

According to Kazembire Zemburuka, spokesperson for the Bank of Namibia, virtual assets have the potential to facilitate financial inclusion, enhance the robustness and affordability of payment systems, and improve cross-border payments.

Johannes Gawaxab, Governor of the Bank of Namibia
“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,” Zemburuka stated.

According to BitKe, In 2022 the Bank of Namibia 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.”

Namibia’s acknowledgement of crypto’s influence and potential is being made clear through this development of new legislation and the laying out of protocols to protect its citizens.

The passing of this law will mean Namibia has joined the ranks of South Africa and Nigeria as African countries to introduce and embrace crypto regulation.

2 views0 comments


bottom of page