Namibia's National Assembly passes the law to regulate cryptocurrencies and digital assets

Namibia's National Assembly passes the law to regulate cryptocurrencies and digital assets

The National Assembly in Namibia has adopted a draft law to regulate digital assets, cryptocurrencies and providers of digital assets in the country. The law on virtual assets was introduced by the Minister of Finance and Public Enterprises, Ipumbu Shiimi, and passed in the lower house of Parliament in June. It should create a framework for the regulation and licensing of providers of virtual assets.

The draft law was introduced for the purpose of consumer protection, the prevention of market abuse and the combating of money laundering and terrorist financing in virtual asset markets. According to the draft law, a person cannot work as a provider of virtual assets, unless they operate a registered and licensed company that is entered or registered in Namibia. In addition, the company must have a registered seat or place of business in the country and lead books across all transactions. If the rules are not complied with, fines of up to $ 10,000,000 or a prison sentence of up to ten years.

The law also provides for the appointment of a regulatory authority that is responsible for monitoring the providers of virtual assets and its services. This authority has the authority to appoint inspectors, set up rules, to issue and enforce instructions, to publish guidelines, to determine fees and to advise the minister in all affairs in connection with virtual assets.

is violated against a rule, the authority can cancel or suspend the license. In certain cases, the license can be temporarily suspended without notice. Before the law can come into force, it must be officially published in the state indicator.

The Bank of Namibia (Bon) has warned that cryptocurrencies are not a legal means of payment and people who act with them are fully responsible for their actions. The bank will make the necessary assessments and express its attitude to accept cryptocurrencies if the associated risks in the financial system are better managed.

The step to regulate digital assets was welcomed by some in the country. Jesaya Hano-Oshike, investment advisor at Riscura Consulting, argues that legislation would reduce fraud and money laundering risks. Arney Tjaronda, financial analyst with high economic intelligence, sees this as a positive step towards creating a well -regulated ecosystem for digital assets. However, both emphasize that the legislation should pay attention to not suffocating innovations.