key takeaways:
- Namibia’s National Assembly has approved a bill to regulate cryptocurrencies and digital assets, aligning with the growing trend among African nations.
- The bill specifically targets the regulation of virtual asset service providers (VASPs) to ensure responsible and secure digital asset activities within the country.
In a significant development for the cryptocurrency industry, Namibia has recently passed a bill to regulate the use of digital assets within its borders. This move showcases Namibia’s proactive approach towards embracing new technologies and fostering a conducive environment for digital innovation.
The bill marks a critical milestone for the country, paving the way for the responsible and secure adoption of cryptocurrencies and digital assets.
Namibia’s National Assembly has joined the growing trend among South African nations by approving a bill to regulate cryptocurrencies and digital assets.
The bill, which was approved by the lower house of parliament, introduces a holistic system for granting licenses and supervising Virtual Asset Service Providers (VASPs).
It also establishes a regulatory body tasked with overseeing the operations of these providers to safeguard consumers, prevent market manipulation, and mitigate the risks associated with money laundering, terrorist financing, and the proliferation of illicit activities within the digital asset markets.
Additionally, the legislation covers ancillary matters related to these primary goals.
The major goals are to safeguard consumers, stop market misuse, and reduce the risks of money laundering, terrorism financing, and proliferation activities related to digital asset markets. The legislation also applies to incidental issues connected to these goals.
However, the Bank of Namibia (BoN) does not recognize virtual currency as legal tender or electronic money in Namibia, which means that individuals who engage in the ownership, usage, or trading of virtual currency are entirely responsible for their actions.
The BoN emphasizes that virtual assets do not hold any legal tender status in the country, making it clear that the acceptance and utilization of virtual currency are not acknowledged by the bank.
The approval of the bill by the Namibian parliament has been praised as a positive move forward. However, experts from Namibia, such as Jesaya Hano-Oshike, have cautioned against the potential creation of unnecessary barriers through the implementation of the law.
According to Hano-Oshike, it is crucial that the legislation does not hinder innovation within the crypto space. Instead, it should promote and support innovative activities within the boundaries set by the law.
The emphasis lies on ensuring that innovative initiatives align with the regulatory framework and operate within its scope. The intention is to strike a balance that encourages innovation while maintaining compliance with the legislation.
Namibia’s approval of the bill signifies a major stride in embracing cryptocurrencies and digital assets while addressing consumer protection, financial integrity, and national security concerns. Once officially published, the bill will come into effect, ushering in a new era of regulated digital asset activity in the country.
