- The purpose of the legislation is to establish guidelines for the licensing and supervision of VASPs.
- The country’s accredited crypto regulator will soon be able to issue licenses to businesses.
After passing a virtual assets bill into law on Friday, the Namibian government plans to create a regulatory body to oversee the sector. To better regulate and supervise virtual asset service providers and related activities, the Government of Namibia enacted the Namibia Virtual Asset Act 2023.
The National Assembly enacted the country’s first law regulating cryptocurrency. The stated purpose of the legislation is to establish guidelines for the licensing and supervision of VASPs.
Prevention of multiple illegal activities
To prevent illegal activities such as money laundering, terrorist financing and proliferation in the digital asset market, it is critical to provide consumer protection, end market abuse and limit the scope of illegal activities. Secondary issues that develop from these basic issues are also covered by the law.
He was also fined 10 million Namibian dollars ($671,572) and ten years in prison. This is against service providers who refuse to comply, according to local media reports.
On Friday, it was published as a law in the official government gazette of the Republic of Namibia. According to Diana Vivo, associate at Ellis Shilengudwa Inc., a division of DLA Piper Africa, “has not been effective yet”.
As Ellis said:
“(It) shall come into force only on a date to be determined by the Minister of Finance of Namibia.”
The country’s authorized crypto regulator will soon be able to issue licenses to businesses offering services related to virtual assets. Also, new law can be passed if necessary. Additionally, the Central Bank of Namibia revealed its intention to build a Central Bank Digital Currency (CBDC) in April.