Namibia Embraces the Future: Signs Law to Control Crypto Exchanges

Last week, the Namibian government changed its decision from 2017 and passed a law to control Virtual Asset Service Providers, including cryptocurrency exchanges. This law, called the Namibia Virtual Assets Act 2023, was officially added to the country's law book on July 21 after being signed by President Hage Geingob on July 14.

This new law's goal is to oversee crypto exchanges in Namibia. It's the first law about how to control activities related to cryptocurrency. The Ministry of Finance will decide when the law will start being used.

The law aims to protect consumers, prevent market abuse, and lower the risks of money laundering and terrorism financing. If providers do not follow this law, they could face fines up to 10 million Namibian dollars ($671,000) and 10 years in prison. Despite this law, Namibia's central bank still says that cryptocurrencies will not be accepted as official money in the country.

This change in law started in May 2018 when the Bank of Namibia reversed its decision to ban cryptocurrency exchanges. Other African countries that have passed laws about cryptocurrency include Botswana, Kenya, Mauritius, and Seychelles. However, some African countries like Cameroon, Ethiopia, Lesotho, and others have banned cryptocurrencies.