Namibia passes bill to regulate crypto and digital assets

Namibia has signed up with other African nations in accepting cryptocurrencies and digital assets by approving an expense in the National Assembly. The costs, which passed Namibias lower house of parliament on June 22, intends to regulate digital properties, cryptocurrencies and virtual possession provider (VASPs) in the country.The legislation intends to develop a structure for licensing and managing VASPs. It also seeks to select a regulatory authority responsible for monitoring these providers and their activities. The primary goals consist of making sure customer security, avoiding market abuse, and mitigating the threats of cash laundering, the financing of terrorism and proliferation activities connected with digital asset markets. The law likewise covers incidental matters associated with these objectives.Screenshot of Namibias Virtual Assets Bill. Source: Parliament of the Republic of NamibiaAccording to regional media reports, the costs is now awaiting main publication before entering into impact. Iipumbu Shiimi, Namibias Minister of Finance and Public Enterprises, apparently mentioned the facility of a regulatory body to monitor and approve licenses to VASPs in the country. Related: South Africa to mandate crypto exchange licenses by end of 2023: ReportNoncompliant service providers might apparently deal with penalties of as much as 10 million Namibian dollars ($671,572) and a 10-year jail term. The Bank of Namibia keeps its position that cryptocurrencies do not hold legal tender status in the country.In the report, Kazembire Zemburuka, the Bank of Namibias director of international relations and strategic interactions, specified the banks position, indicating that when the associated risks of developments like virtual assets are much better managed, the bank will make a decision and evaluate regarding their approval within the financial system.In 2017, the bank revealed that it was strongly versus the use of cryptocurrencies as a method of payment for services and items. It mentioned that virtual currency exchanges have no location in the African country under its decades-old law.Magazine: Bitcoin in Senegal: Why is this African country using BTC?

Other Questions People Ask

What are the main objectives of the bill that Namibia passed to regulate crypto and digital assets?

The primary objectives of the bill passed by Namibia to regulate crypto and digital assets include ensuring customer protection, preventing market abuse, and mitigating risks associated with money laundering and the financing of terrorism. The legislation aims to establish a framework for licensing and managing virtual asset service providers (VASPs) in the country. Additionally, it seeks to create a regulatory authority responsible for overseeing these providers and their activities.

How will Namibia's new bill impact virtual asset service providers (VASPs)?

Namibia's new bill will significantly impact virtual asset service providers (VASPs) by requiring them to obtain licenses to operate legally within the country. Noncompliant service providers could face severe penalties, including fines of up to 10 million Namibian dollars and potential imprisonment for up to 10 years. This regulatory framework aims to enhance accountability and transparency in the digital asset market, ultimately fostering a safer environment for consumers.

What is the current stance of the Bank of Namibia regarding cryptocurrencies after the bill's passage?

After the passage of the bill, the Bank of Namibia maintains its position that cryptocurrencies do not hold legal tender status in the country. The bank has expressed that it is against the use of cryptocurrencies as a means of payment for goods and services. However, it indicated that once the risks associated with virtual assets are better managed, it may reconsider their approval within the financial system.

What are the next steps for Namibia's crypto regulation after the bill's approval?

Following the approval of the bill in Namibia's National Assembly, the next steps involve its official publication before it can come into effect. This will initiate the establishment of a regulatory body tasked with monitoring and licensing virtual asset service providers (VASPs). The implementation of this regulatory framework is crucial for ensuring compliance and enhancing consumer protection in the growing digital asset market.