Namibia

**Report on the Status of Retail Cryptocurrency Trading in Namibia**

**Topic:** Retail_Trading_Status
**Description:** Assess whether individual citizens and residents in the country are legally permitted to buy, sell, and hold cryptocurrencies. Detail the regulatory environment surrounding this activity (e.g., KYC/AML requirements imposed on platforms, general warnings issued).
**Date of Report:** April 12, 2025

**1. Current Status:** `Allowed-Regulated`

**2. Narrative Explanation:**

The status of retail cryptocurrency trading in Namibia has evolved significantly. Initially, the Bank of Namibia (BON) held a restrictive stance. In position papers from 2017 and 2018, the BON stated that cryptocurrencies were not legal tender, could not be used for payments by merchants, and strongly discouraged the public from investing in, trading, or holding them due to high risks and lack of regulation. The establishment of cryptocurrency exchanges within Namibia was deemed illegal under existing laws like the Currency and Exchanges Act and the Payment System Management Act.

However, this position has shifted towards regulation rather than an outright ban on individual activity or the service providers facilitating it. While cryptocurrencies remain *not* legal tender in Namibia, the BON has acknowledged the growing interest and prevalence of virtual assets.

The key development is the enactment of the **Virtual Assets Act, 2023 (Act No. 10 of 2023)**, which became operational on July 25, 2023. This Act does not prohibit individuals from buying, selling, or holding cryptocurrencies (referred to broadly as "virtual assets"). Instead, it focuses on licensing and regulating **Virtual Asset Service Providers (VASPs)** – entities that facilitate these activities as a business (e.g., exchanges, wallet providers, initial token offering platforms).

The BON has been designated as the **Regulatory Authority** responsible for licensing and prudential supervision of VASPs under the Act. The **Financial Intelligence Centre (FIC)** is responsible for the Anti-Money Laundering/Combating the Financing of Terrorism and Proliferation (AML/CFT/CPF) registration and supervision of VASPs, which are now considered "Accountable Institutions" under the Financial Intelligence Act, 2012 (FIA), as amended. This means VASPs operating in Namibia must comply with AML/CFT obligations, including customer due diligence (KYC) and transaction reporting.

In January 2025, the BON granted **provisional authorisation** to two entities, Mindex Virtual Asset Exchange (Pty) Ltd and Landifa Bitcoin Trade CC, to operate as VASPs. This provisional license, valid for six months, allows them to set up operations but prohibits them from engaging with the public until they meet all pre-authorisation conditions and receive a full operational license.

Therefore, while individuals trade at their own risk and cryptocurrencies are not legal tender, the activity itself is permitted. Furthermore, the environment is now actively being regulated through the licensing and supervision of the service providers that facilitate retail trading, imposing specific AML/CFT and consumer protection requirements on these platforms. This moves the status from previously "Allowed-Unregulated" (or arguably "Restricted" due to the earlier stance on exchanges) to "Allowed-Regulated".

**3. Supporting Excerpts:**

*   **On the legality of VASP services (implying legality of individual use via licensed providers):**
    *   "He said the Virtual Assets Act of 2023 gives the bank the mandate to license and supervise virtual asset service providers (VASPs). 'Therefore, the provision of virtual asset services, such as the exchange of fiat currency for cryptocurrencies or vice versa, as defined in the act, is legal in Namibia,' Zemburuka said."
        *   Source: The Namibian, January 20, 2025

*   **On Cryptocurrency Not Being Legal Tender:**
    *   "As for virtual currencies, these will not enjoy legal tender status such as that accorded to the Namibian Dollar. Acceptance of virtual currencies for the payment of goods and services will be at the discretion of any merchant and buyer willing to participate in such an exchange or trade."
        *   Source: Bank of Namibia Media Release, August 8, 2023
    *   "'However, it is important to note that cryptocurrencies are not legal tender in Namibia and are not legally recognised or accepted as a means of payment,' Zemburuka added."
        *   Source: The Namibian, January 20, 2025

*   **On the Enactment and Purpose of the Virtual Assets Act, 2023:**
    *   "Namibia enacted the country's first legislation to license and regulate Virtual Asset Service Providers (VASPs) and Initial Token-Offering Service Providers (ITOSPs). The Virtual Assets Act, 2023 (Act No. 10 of 2023) (VAA) became operational on 25 July 2023."
        *   Source: Bank of Namibia - "All you need to know about the Virtual Assets Act, 2023"
    *   "The preamble of the VAA states that it was enacted to provide for the licensing and regulation of virtual asset service providers as well as to designate a Regulatory Authority to regulate and supervise virtual asset service providers and related activities in order to ensure consumer protection, prevention of market abuse and prevention or mitigation of the risk of money laundering, financing of terrorism and proliferation activities posed by virtual assets markets."
        *   Source: Afriwise, discussing the Virtual Assets Act 10 of 2023

*   **On Regulatory Oversight (BON and FIC):**
    *   "The Minister of Finance and Public Enterprises, in terms of section 5 of the VAA, has designated the Bank as the prudential Regulating Authority of the industry. In this role, the Bank shall prudentially license, regulate and supervise virtual asset service providers and initial coin offering service providers. The Financial Intelligence Centre (FIC) will still carry out the Anti-Money Laundering and Combatting the Financing of Terrorism and Proliferation (AML/CFT/CPF) registration, licensing, and supervision role over the industry."
        *   Source: Bank of Namibia - "All you need to know about the Virtual Assets Act, 2023"
    *   "Similarly, VASPs are Accountable Institutions and therefore need to register with the FIC, as per the Financial Intelligence Act, 2012 (The FIA). See section 20(A)(3). FIC registration enables supervision of such VASPs to combat Money Laundering (ML), Terrorism Financing (TF) and Proliferation Financing (PF) activities."
        *   Source: Financial Intelligence Centre Directive, September 26, 2023

*   **On Provisional Licensing of VASPs:**
    *   "Provisional Authorisation to Operate as a Virtual Asset Service Provider granted in terms of the Virtual Asset Act, 2023 (Act No. 10 of 2023): ▫ Mindex Virtual Asset Exchange (Pty) Ltd. ▫ Landifa Bitcoin Trade CC" [...] "It is important to note that during the six-month provisional authorisation period, the entities are not allowed to conduct any business or engage with individuals or entities in Namibia."
        *   Source: Bank of Namibia Media Release, January 13, 2025

**4. Source URLs:**

*   **Bank of Namibia - Virtual Assets Act Information Page:**
    *   `https://www.bon.com.na/Informations/Public-Notices/All-you-need-to-know-about-the-Virtual-Assets-Act.aspx` (Contains link to the Act PDF and explanatory brochure) - *Primary Source*
*   **Bank of Namibia - Media Release on Provisional Authorisations (Jan 2025):**
    *   `https://www.bon.com.na/Informations/Media-Release/PROVISIONAL-AUTHORISATION-GRANTED-TO-NEW-ENTITIES.aspx` - *Primary Source*
*   **Bank of Namibia - Media Release on Virtual Assets Act (Aug 2023):**
    *   `https://www.bon.com.na/Informations/Media-Release/Media-release-Virtual-Assets-Act.aspx` - *Primary Source*
*   **Bank of Namibia - Position Papers Page (includes 2018 paper):**
    *   `https://www.bon.com.na/Publications/Position-Papers.aspx` - *Primary Source* (Link to the specific 2018 paper: `https://www.bon.com.na/CMSTemplates/Bon/Files/bon.com.na/2d/2d8154b3-471b-4433-8641-47f50021610b.pdf`)
*   **Financial Intelligence Centre (FIC) - Directive on VASP Registration (Sept 2023):**
    *   `https://www.fic.na/uploads/documents/89957_FIC%20Directive%208%20of%202023%20-%20VASPs%20Registration%20and%20Annual%20Returns.pdf` - *Primary Source*
*   **The Namibian - Article on Crypto Legality (Jan 2025):**
    *   `https://www.namibian.com.na/cryptocurrencies-not-legal-tender-bank-of-namibia-insists/` - *Reputable Secondary Source*
*   **Afriwise - Analysis of Virtual Assets Act:**
    *   `https://www.afriwise.com/insights/namibia-the-virtual-assets-act-10-of-2023-what-should-you-know/` - *Reputable Secondary Source (Legal Analysis)*
*   **Virtual Assets Act, 2023 (Direct Link via BON):**
    *   `https://www.bon.com.na/CMSTemplates/Bon/Files/bon.com.na/90/90d8c518-f9a2-4e6d-98a4-b192c1a93253.pdf` - *Primary Source (Legislation)*