The Namibian government signed a law regulating the activities of virtual asset service providers (VASPs).
The document will come into force on a date to be set by the Ministry of Finance.
The Namibia Virtual Assets Act 2023 provides for the appointment of a supervisory authority to oversee VASPs and related operations.
Among the act’s stated objectives are protecting consumer rights and reducing money-laundering and terrorism-financing risks.
Violations of the established norms may be punished by fines of up to 10 million Namibian dollars (~$617,000) and up to 10 years in prison.
This is the country’s first law on cryptocurrency regulation. In June it was passed by the National Assembly, and was subsequently approved by Namibian President Hage Geingob.
In 2017 the central bank banned cryptocurrency exchanges and the use of digital assets for paying goods and services. A year later the regulator softened its stance toward trading platforms. However, the agency confirmed that cryptocurrencies do not have legal tender status.
In neighbouring South Africa, authorities required Bitcoin exchanges to obtain licenses by the end of 2023.