The Central Bank of Namibia has granted the first provisional licenses to two crypto exchanges.
According to local media, citing a recent press statement from the regulator, the Bank of Namibia has granted provisional authorization to Mindex Virtual Asset Exchange (Pty) Ltd. and Landifa Bitcoin Trade CC to operate as virtual asset service providers.
However, the service cannot be made available to the general public until it receives final approval from the central bank. The provisional license is valid for six months and allows companies to establish operations, hire staff and set up the necessary infrastructure.
Final approval will only be granted if the company meets all requirements mandated by the central bank.
The bank's spokesperson, Kazebile Zemburuka, said that if a company completes its incorporation preparations and is ready before the end of the six-month period, the central bank will inspect its operations and approve it sooner. clarified that companies can engage with the public before making loans. overall timeline.
The preliminary license was granted under the Virtual Assets Law, approved by the country's parliament, and subsequently signed by former President Hage Geingob in July 2023.
Under the Namibia Virtual Assets Act 2023, non-compliant providers face severe penalties, including fines of up to 10 million Namibian dollars (approximately $527,983) and up to 10 years in prison.
The Bank of Namibia, as the regulator designated by this law, ensures that virtual asset service providers comply with measures aimed at preventing money laundering, terrorist financing and other financial crimes. I continue to supervise this.
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 its October 2024 update, the intergovernmental policy-making body suggested the country needs to continue to strengthen its response.
Several other African countries have introduced legislation to regulate the digital currency sector. Most recently, on January 10, Kenney launched a public consultation on a bill to regulate virtual assets. Other countries, including Botswana, Mauritius and Seychelles, have followed suit.
