Bank of Namibia grants provisional licenses to two crypto exchanges

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In simple terms, the central bank of Namibia has issued preliminary permits to two digital currency trading platforms for their operations.

Based on reports from local news outlets, these entities – Mindex Virtual Asset Exchange (Pty) Ltd. and Landifa Bitcoin Trade CC – have been given temporary approval by the Bank of Namibia to function as providers of virtual asset services.

Yet, these companies can’t start providing services to the general public until they secure final authorization from the central bank. Temporary permits, good for a period of six months, enable them to set up their business, recruit employees, and arrange necessary facilities.

Approval can only be given once the companies fulfill all the conditions set forth by the central bank.

As an analyst, I’d rephrase it like this: Kazembire Zemburuka, the bank’s spokesperson, explained that if companies finish setting up their systems within the initial six-month period, the central bank may choose to inspect their operations earlier than expected. This early approval would enable these companies to interact with the public before the established overall timeline.

Initially, licenses were issued based on the Virtual Assets Law, a bill that received approval from the National Assembly and was later endorsed by then-President Hage Geingob in July of 2023.

As a researcher delving into the regulations governing virtual assets in Namibia, I’ve learned that the Namibia Virtual Assets Act of 2023 sets some stringent rules. For those who fail to comply, the consequences can be quite severe. These penalties include fines amounting to as much as 10 million Namibian dollars (around $527,983 USD) and imprisonment for a term of up to 10 years.

In this context, the Bank of Namibia, being the appointed regulatory body, maintains control to verify that Virtual Asset Service Providers adhere to regulations designed to prevent illegal activities such as money laundering, funding of terrorism, and other financial offenses.

Previously, Namibia was placed on a watchlist by the Financial Action Task Force, indicating it had issues in its Anti-Money Laundering (AML) and Countering Financing of Terrorism (CFT) systems. In an October 2024 review, this international organization recommended that the country should further bolster its defenses against money laundering and terror financing.

In recent developments, various African nations are enacting legislation to oversee the digital currency market. Notably, Kenya initiated a public discussion on January 10th about a draft law aimed at regulating virtual assets. Additionally, countries such as Botswana, Mauritius, and Seychelles have taken similar steps in this direction.

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2025-01-15 13:46