Namibia has passed legislation in its parliament and is committed to adopting cryptocurrencies and digital assets like other African countries. The bill, which passed the Namibian House of Representatives on June 22, aims to regulate digital assets, cryptocurrencies and virtual asset service providers (VASPs) in the country.
of law It aims to establish a VASP licensing and regulatory framework. It also calls for the appointment of a regulator responsible for overseeing these providers and their activities.
Key objectives include ensuring consumer protection, preventing market abuse, mitigating the risks of money laundering, terrorist financing and proliferation activities associated with digital asset markets. The Act also covers ancillary matters related to these purposes.
according to Local media reports said the bill is currently awaiting a formal announcement before it comes into force. Namibia’s Finance and Public Enterprises Minister Ipumbu Siimi reportedly mentioned the establishment of a regulatory body to oversee and license VASPs in the country.
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Violating providers could be fined up to N$10 million ($671,572) and imprisoned for 10 years, according to reports. However, Bank of Namibia maintains its position that cryptocurrencies do not hold legal tender status in the country.
Bank of Namibia’s Director of Strategic Communications and International Relations, Kazembile Zemburka, said in the report the bank’s position that if the risks associated with innovations such as virtual assets were better managed, the bank would be open to accepting them. He suggested that he would evaluate and make a decision. within the financial system.
In 2017, the bank announced that it strongly opposes the use of cryptocurrencies as a method of payment for goods and services. He said there was no place for cryptocurrency exchanges in African countries under decades-old laws.
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