Namibia’s Central Bank Grants Provisional Licenses to Two Cryptocurrency Exchanges
Recently, Namibia’s central bank made a significant move by granting provisional licenses to two cryptocurrency exchanges, marking a milestone in the country’s digital asset landscape. The Bank of Namibia announced its decision to provisionally authorize Mindex Virtual Asset Exchange (Pty) Ltd. and Landifa Bitcoin Trade CC to operate as virtual asset service providers.
Despite this development, the two exchanges are not yet able to offer services to the public until they receive final approval from the central bank. These provisional licenses, which are valid for six months, allow the companies to set up their operations, recruit staff, and establish the necessary infrastructure.
Final approval will only be granted if the companies meet all the requirements mandated by the central bank. Kazembire Zemburuka, a spokesperson for the bank, clarified that if the companies complete their setup and are ready before the six-month period concludes, the central bank can inspect their operations and grant approval earlier, enabling them to engage with the public ahead of schedule.
Regulatory Framework and Compliance
The provisional licenses were issued under the Namibia Virtual Assets Act 2023, which was approved by the country’s National Assembly and signed into law by former President Hage Geingob in July of 2023. The act imposes strict penalties on non-compliant providers, including fines of up to 10 million Namibian dollars (approximately $527,983) and imprisonment for up to 10 years.
As the designated regulatory authority under the act, the Bank of Namibia is responsible for overseeing virtual asset service providers to ensure compliance with measures aimed at preventing money laundering, terrorism financing, and other financial crimes.
International Compliance and Regional Trends
Notably, Namibia was included in the Financial Action Task Force’s grey list last year, identifying countries with strategic deficiencies in their AML/CFT regimes. In an October 2024 update, the FATF recommended that Namibia continue strengthening its countermeasures.
Across the African continent, several countries have introduced legislation to regulate the digital currency sector. Kenya recently initiated a public consultation for a draft law to regulate virtual assets on Jan. 10. Similarly, countries like Botswana, Mauritius, and Seychelles have also taken steps to regulate the digital currency space.
The granting of provisional licenses to these cryptocurrency exchanges signals a growing recognition of the importance of regulating the digital asset industry in Namibia and aligning with international standards to combat financial crimes effectively.