This African Country Accepts the Proposed Bill for Regulating Cryptocurrencies

• The National Assembly has approved a draft law regulating domestic digital assets, cryptocurrencies, and digital asset service providers.
• The purpose of this draft law is to provide a framework for the licensing and regulation of virtual asset service providers (VASPs).
• Non-compliant providers may face hefty fines and up to ten years of imprisonment.

The National Assembly of the African country with a population of over 2.5 million has approved the draft law prepared for the regulation of crypto assets.

Namibia Adopts Crypto Bill

The National Assembly of Namibia, a country with a population of 2.5 million in Africa, has approved a draft law regulating domestic digital assets, cryptocurrencies, and digital asset service providers.

The purpose of this draft law is to provide a framework for the licensing and regulation of virtual asset service providers (VASPs). It also aims to appoint a regulator to oversee these providers and their activities. Important goals include consumer protection, limiting market abuse, combating money laundering, terrorism financing, and reducing the risk of spread in the virtual asset market. The measure should become effective before it is officially published.

The measure is awaiting enforcement while waiting for official publication. Namibia’s Minister of Finance and Public Enterprises, Iipumbu Shiimi, stated in his report that a regulatory institution has been established to regulate and license VASPs in the country.

Non-compliant providers may face fines of up to ten million Namibian dollars and up to ten years of imprisonment.

BON States that Cryptocurrencies are Not Recognized as “Legal Tender”

Kazembire Zemburuka, BON’s Director of Strategic Communication and International Relations, stated in the report that the bank would evaluate and decide to accept innovations such as virtual assets into its financial system if their associated risks are better managed.

The parliamentary execution of a draft law to legitimize digital assets seems to contradict BON’s statement at the end of 2022. BON specifically believes that cryptocurrencies are not recognized as legal tender in this country. However, the bank has stated that it will not prohibit companies and traders from accepting cryptocurrencies.

While the adoption of the draft law by the Namibian parliament has received praise as a step in the right direction, other experts emphasize that the implementation should not create unnecessary barriers.