Namibia Grants Provisional Licenses to 4 Entities to Offer Virtual Asset Services

Among them, have been approved to operate as virtual asset service providers for a six-month period. During this time, these companies will establish their operations

Four entities in Namibia have been granted provisional licenses by the Bank of Namibia (BoN) to offer payment services and virtual asset services for a six-month period.

During this time, the companies will set up their operations, acquire the necessary equipment, and implement software to facilitate services such as cryptocurrency trading, exchanges, and ATMs.

However, the businesses are not yet authorized to engage with the public.

“Only after six months do they get final approval.

In the meantime, they must hire their people and put infrastructure in place. If they are ready before the six months, the bank can inspect their setup and once approval is granted, they can engage the public,” said Kazembire Zemburuka, the Bank of Namibia’s spokesperson.

Namibia is one of the leading countries on the continent for crypto regulation. As reported by BitKE, the Virtual Assets Act of 2023 was introduced to combat money laundering and grant the Bank of Namibia (BoN) regulatory oversight over virtual asset services.

REGULATION | The Namibian 🇳🇦 Government Officially Gazzettes the Virtual Assets Act 2023 into Law to Regulate Virtual Asset Service Providers

The Namibia Virtual Assets Bill is now a law after its gazzettment. Namibia now joins South Africa 🇿🇦 and Nigeria 🇳🇬as the African… pic.twitter.com/yoJZxzofd2

— BitKE (@BitcoinKE) July 27, 2023

One of the primary objectives of the law is to guarantee the safety and well-being of consumers while also safeguarding against market exploitation and reducing the chances of money laundering and funding terrorism.

However, the Bank of Namibia, the country’s central bank, continues to say that cryptocurrencies will not be considered legal tender within the nation.

Economic analyst Josef Sheehama views the Bank of Namibia’s recognition of cryptocurrencies and virtual asset service providers as a positive step for the country’s financial sector.

By regulating cryptocurrencies in Namibia, the Bank of Namibia is enhancing the security of cryptocurrency transactions while also encouraging more participation in the sector, said Sheehama.

“Namibia must embrace the vast opportunities presented by this cutting-edge technology to drive prosperity and economic growth.

Cryptocurrencies, as a result of this revolution, are now an integral part of the future of global trade,” he said.

Sheehama believes this move could ignite the Fourth Industrial Revolution as these businesses primarily merge information technology with finance, driving innovation in the sector.

“Today’s world is changing faster than ever before.

Companies need to respond to their changing customers and competitive landscape through digital transformation. Businesses need to be agile,” he noted.

Follow us on X for latest posts and updates

Join and interact with our Telegram community