Bank of Namibia grants provisional licenses to two crypto exchanges

Namibia’s central bank has granted the first set of provisional licenses to two cryptocurrency exchanges.

According to local media reports, citing a recent press release from the regulator, the Bank of Namibia has announced that Mindex Virtual Asset Exchange (Pty) Ltd. and Landifa granted temporary authorization to Bitcoin Trade CC to operate as virtual asset service providers.

However, they will not be able to provide services to the public until final approval is received from the central bank. Temporary licenses, valid for six months, allow companies to establish their operations, hire staff and establish the necessary infrastructure.

Final approval will be given only if companies meet all the requirements imposed by the central bank.

Kazembire Zemburuka, the bank’s spokesperson, explained that if the companies complete their setup and are ready before the six-month period expires, the central bank can supervise their activities and give approval earlier, thus allowing the companies to interact with the public before the 6-month period. general timeline.

The preliminary licenses were issued under the Virtual Assets Act, which was approved by the country’s National Assembly and subsequently signed by former President Hage Geingob in July 2023.

Under Namibia’s Virtual Assets Act 2023, non-compliant providers face serious penalties, including fines of up to 10 million Namibian dollars (approximately $527,983) and imprisonment for up to 10 years.

As the regulatory authority established by law, the Bank of Namibia maintains oversight over virtual asset service providers to ensure that they comply with measures aimed at preventing money laundering, terrorist financing and other financial crimes.

Last year Namibia was included in the gray list of the Financial Action Task Force, which identifies countries with strategic deficiencies in their AML/CFT regimes. The intergovernmental policy-making body suggested in an update in October 2024 that the country should continue to strengthen its countermeasures.

Some other African countries have introduced laws to regulate the digital currency sector. Most recently, on January 10, Keny opened public consultation on a draft law to regulate virtual assets. Other countries such as Botswana, Mauritius and Seychelles have made similar moves.