Namibia Reverses Bearish Crypto Decision
Market Musing-g

Namibia Reverses Bearish Crypto Decision

3m
1 year ago

In a significant move, the Namibian government has officially reversed its previous decision to ban...

Namibia Reverses Bearish Crypto Decision

In a significant move, the Namibian government has officially reversed its previous decision to ban cryptocurrency exchanges in the country.

Instead, it has embraced a new law to regulate Virtual Asset Service Providers (VASPs) operating within its borders. The Namibia Virtual Assets Act 2023 was approved in the National Assembly on July 6 and signed by President Hage Geingob on July 14.

Subsequently, on July 21, the law was inserted into the Gazette of the Republic of Namibia, solidifying its implementation.

This groundbreaking legislation represents the first comprehensive framework in Namibia’s history that governs cryptocurrency-related activities.

The primary objective of the Namibia Virtual Assets Act is to establish a regulatory authority responsible for supervising and overseeing crypto exchanges within the country.

By doing so, the government aims to ensure consumer protection, curb market abuse, and address the risks associated with money laundering and terrorist financing.

The law sets out strict penalties for non-compliant VASPs, with potential fines of up to 10 million Namibian dollars (approximately $671,000) and a maximum prison sentence of 10 years.

However, it is worth noting that the country’s central bank, the Bank of Namibia, remains firm in its stance that cryptocurrencies will not be recognized as legal tender within Namibia.

READ MORE: Ripple CEO Brad Garlinghouse Criticizes SEC’s ‘Regulation by Enforcement’

The journey towards this regulatory environment started in May 2018 when the Bank of Namibia made a significant policy shift by revising its initial decision to ban cryptocurrency exchanges.

Since then, the government has been exploring ways to address the emerging digital asset landscape while safeguarding its citizens and financial system.

Namibia is not alone in its evolving approach to cryptocurrencies in Africa.

Earlier this month, South Africa’s financial regulator announced that all cryptocurrency exchanges in the country must obtain licenses by the end of 2023 to continue their operations legally.

Other African nations, such as Botswana, Kenya, Mauritius, and Seychelles, have also enacted laws to regulate cryptocurrency activities.

In contrast, some countries, including Cameroon, Ethiopia, Lesotho, Liberia, Republic of the Congo, Sierra Leone, Tanzania, and Zimbabwe, have chosen to ban cryptocurrencies altogether, according to information from the International Monetary Fund.

As for Namibia’s new Virtual Assets Act, it will come into force at a date determined by the Ministry of Finance, giving stakeholders time to prepare and adjust to the regulatory framework.

By embracing this progressive approach to cryptocurrencies, Namibia seeks to strike a balance between fostering innovation and protecting its financial system from potential risks associated with the digital asset market.

Other Stories:

Worldcoin Sparks Controversy As It Launches Ecosystem Token

Crypto Lending Firm Faces Service Disruption as Assets Seized by Regulator

Former FTX CEO Accepts Gag Order Amidst Trial

0 people liked this article

Related Articles

Market Musing-g
Avalanche (AVAX) Price Prediction 2024, 2025, 2026-2030
In this Avalanche (AVAX) price prediction 2024, 2025-2030, we will analyze the price patterns of AVAX by using accurate trader-friendly technical analysis indicators and predict the future movement...
1 year ago
14m
Market Musing-g
Why Ethereum (ETH) Traders Should Brace Up for a Potential Downtrend
Although traders have shifted attention from Ethereum (ETH) and Bitcoin (BTC) lately, ETH was on the verge of finally losing hold of any sign of a bullish pattern. Recently, the altcoin has been ho...
1 year ago
2m
Market Musing-g
Ripple CEO Slams SEC for its Crypto Policies
Ripple CEO Brad Garlinghouse bashed the Securities and Exchange Commission for their "regulation by enforcement" strategy. The post Ripple CEO Slams SEC for its Crypto Policies appeared first on La...
1 year ago
3m
Market Musing-g
Bitcoin On The Rise, BlackRock Pursuing ETF: Is Crypto Winter Over?
Animoca Brands co-founder and executive chairman, Yat Siu published a blog recently in collaboration with Bloomberg where he discusses the current state of affairs in the crypto industry. Titled ‘I...
1 year ago
2m
Market Musing-g
Security Firm Exposes Tactics Behind Fake Deposit Attacks on Exchanges
In a recent blog, blockchain security firm SlowMist revealed the alarming prevalence of fake deposit attacks targeting crypto exchanges. These attacks exploit system errors in exchanges’ deposit op...
1 year ago
1m
Blog
Trader Capitalizes on $LINK to $USDC Swaps, Makes $200K Profit in a Month
Savvy trader amasses $200K profit in a month, deftly swapping LINK to USDC. Impressive track record, surpassing $1M in previous gains.
1 year ago
2m