Namibia’s central bank has granted the first set of provisional licenses to two cryptocurrency exchanges.
According to local media, citing recent media statement of the regulator, the Bank of Namibia has granted provisional permission to Mindex Virtual Asset Exchange (Pty) Ltd. and Landifa Bitcoin Trade CC to operate as virtual asset service providers.
However, they will not be able to offer services to the public until they receive final approval from the central bank. The provisional permits, which are valid for six months, allow companies to set up their activities, hire staff and set up the necessary infrastructure.
Final approval will only be granted if the companies meet all requirements set by the central bank.
Kazembire Zemburuka, a spokesperson for the bank, clarified that if the companies complete their setup and are ready before the six-month period expires, the central bank can inspect their operations and grant approval earlier, allowing them to engage with the public ahead of the overall timeline.
The provisional permits have been granted under the Virtual Assets Actwhich was approved by the country’s National Assembly and subsequently signed by former President Hage Geingob in July 2023.
Under the Namibia Virtual Assets Act 2023, providers who do not comply with the rules face stiff penalties, including fines of up to 10 million Namibian dollars (approximately $527,983) and a prison sentence of up to 10 years.
The Bank of Namibia, as the regulatory body designated by law, monitors virtual asset service providers to ensure that they comply with measures aimed at preventing money laundering, the financing of terrorism and other financial crimes.
Last year, Namibia was included in the Financial Action Task Force’s gray list, which identifies countries with strategic deficiencies in their AML/CFT regimes. In an October 2024 update, the intergovernmental policy-making body suggested that the country should continue to strengthen its countermeasures.
Several other African countries have introduced laws to regulate the digital currency sector. Most recently, on January 10, Keny opened a public consultation for a draft law to regulate virtual assets. Other countries such as Botswana, Mauritius and the Seychelles have also taken similar steps.
