The new law aims to ensure the protection of consumers of virtual asset services, as well as preventing abuse and countering the laundering of crime proceeds in the digital asset marketplace. Namibia’s Minister of Finance and Public Enterprises, Iipumbu Shiimi, has announced the establishment of a new regulatory body to oversee and issue VASP licenses.
Under the enacted legislation, VASP providers who violate the requirements of the Virtual Assets Act will face a fine of more than $670 000 and a ten-year prison term.
The Central Bank of Namibia (BoN) recalled its specific position that the regulator is strongly against the use of cryptocurrencies as a method of payment for any goods and services, and does not recognize virtual assets as legal tender.
Namibia’s Central Bank has repeatedly stated that it does not support the ownership and trading of digital assets, but is ready to make an exception for the central bank’s digital currency (CBDC), which officials believe is the only means of payment that is safe, widely available and cost-effective.