Namibia's National Assembly has recently passed a bill to establish a framework for regulating the crypto market and virtual asset service providers in the African country. The legislation also appoints a regulatory authority responsible for overseeing the crypto industry and enforcing the new regulations. The bill mainly aims to ensure consumer protection, prevent market abuse, and reduce risks regarding money laundering, terrorism financing, and proliferation activities. - The regulation will enter into force after the official publication.
- The country's minister of finance and public enterprises, Iipumbu Shiimi, said the government would establish a regulatory body to supervise the crypto market and grant licenses to the market participants.
- As part of the bill, service providers failing to comply with the regulation could face penalties of up to 10M Namibian dollars (~$671,500) and 10 years in prison.
On the other hand, in 2017, the Bank of Namibia, the country's central bank, announced that it was strongly against the use of cryptocurrencies as a payment method for goods and services. - The bank's director of strategic communications and international relations, Kazembire Zemburuka, recently stated that it would assess cryptocurrencies' acceptance within the financial system again once the associated risks are better managed.
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