Namibia Adopts a Crypto Regulation Bill

The Namibian Virtual Assets Act 2023, which was recently approved by President Hage Geingob, is the country’s first law regarding the regulation of cryptocurrencies.

The document provides for the appointment of a supervisory authority over Virtual Asset Service Providers (VASPs) and related transactions, with the aim of protecting consumer rights and reducing the risks of money laundering and terrorist financing.

It also dictates that violations of the operating rules by VASPs may result in a fine of up to 10 million Namibian dollars (~$617,000) and up to 10 years in prison.

The act comes on the heels of the Central Bank’s 2017 ban on crypto exchanges and digital assets used as payment for goods and services, which was followed by a softer stance on trading platforms the following year. It is set to be effective on the date determined by the Ministry of Finance.