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Namibia

Retail_Trading_Status

Allowed-Regulated Unknown
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Status Changed

Previous status: Gray-Zone

The primary reason for the difference in the analysis results and the identified status of retail cryptocurrency trading in Namibia is the significant legislative and regulatory developments that occurred between the information cut-off point implicitly reflected in the "Previous Analysis" and the more current information captured in the "New Analysis." The "Previous Analysis," while dated 2025-06-26, describes a situation largely reflective of the period up to late 2023. It correctly identifies the Bank of Namibia's (BoN) historical cautious stance, its warnings, the prohibition on traditional financial institutions facilitating crypto transactions, and the early exploratory steps towards regulation (2022-2023). This led to the accurate assessment of "Gray-Zone" because, while not illegal for individuals, there was no formal legal framework permitting and regulating the activity, creating uncertainty and practical limitations. The "New Analysis," also dated 2025-06-26, incorporates crucial developments that fundamentally altered the landscape: 1. Enactment of the Namibia Virtual Assets Act, 2023: This Act, signed into law in July 2023, provided the first comprehensive legal framework for regulating virtual assets and Virtual Asset Service Providers (VASPs) in Namibia. This was a pivotal shift from a regulatory vacuum to a structured approach. 2. Designation of a Regulatory Authority: The Minister of Finance subsequently designated the Bank of Namibia as the Regulatory Authority under the Virtual Assets Act. This clarified who would oversee the new framework. 3. FIC Registration Requirements for VASPs: The Financial Intelligence Centre (FIC) issued directives requiring VASPs to register and implement AML/CFT policies, with deadlines in late 2023. This signaled the operationalization of AML/CFT oversight specific to the crypto sector. 4. Issuance of Provisional VASP Licenses: A key development highlighted in the "New Analysis" is the BoN's announcement in January 2025 of issuing provisional operational permissions to two VASPs. This action demonstrates the practical implementation of the Virtual Assets Act and the move towards a licensed and supervised crypto market. These developments collectively transitioned Namibia from a "Gray-Zone" to an "Allowed-Regulated" environment. The "New Analysis" reflects this by detailing how individuals can now legally engage in cryptocurrency trading through VASPs that are, or will be, licensed and supervised by the BoN, subject to AML/KYC requirements. In essence, the "Previous Analysis" captured a period of uncertainty and caution before a formal regulatory regime was established. The "New Analysis" reflects the subsequent establishment of this legal and regulatory framework through the Virtual Assets Act, 2023, and the initial steps taken by the BoN and FIC to implement it, including the licensing process for VASPs. The difference is not a contradiction of facts for their respective implicit timeframes, but rather an evolution of the regulatory status over time, with the "New Analysis" being more current and reflecting these transformative legal changes.

Analysis ID
#387
Version
Latest
Created
2025-06-26 12:49
Workflow Stage
Live

Executive Summary

Namibia has shifted from discouraging cryptocurrency use to establishing a regulated environment through the Namibia Virtual Assets Act, 2023. While cryptocurrencies are not legal tender, individuals can buy, sell, and hold them via licensed Virtual Asset Service Providers (VASPs). The Bank of Namibia (BoN) is the designated Regulatory Authority, overseeing VASP licensing and supervision to ensure consumer protection and prevent financial crimes. VASPs must comply with AML/CFT and KYC regulations.

Key Pillars

The regulatory framework in Namibia is built upon the Bank of Namibia (BoN) as the primary regulator, responsible for overseeing the virtual asset ecosystem. Core compliance requirements include adherence to AML/CFT regulations and KYC obligations for VASPs. Licensing or registration with the BoN and the Financial Intelligence Centre (FIC) is mandatory for VASPs operating within the country, ensuring they meet specific regulatory standards and operational guidelines.

Landmark Laws

  • Namibia Virtual Assets Act, 2023 (Act No. 10 of 2023):
    • Date of issue: July 2023
    • Summary: Provides a legal framework for the regulation of VASPs, aims to ensure consumer protection, prevent market abuse, and mitigate risks related to money laundering and terrorism financing. Designates the Bank of Namibia as the Regulatory Authority for licensing and supervision of VASPs. Non-compliant providers could face penalties of up to $671,000 (10 million Namibian dollars) and 10 years in prison.

Considerations

  • Cryptocurrencies are not legal tender in Namibia, and their acceptance for payments is at the discretion of individuals and businesses.
  • The Bank of Namibia emphasizes that individuals who own, utilize, or trade in virtual currencies do so at their own risk and will have no recourse to the Bank in the event of financial loss.
  • NAMFISA is involved in updating regulatory frameworks to address challenges in digital finance, including cryptocurrency, and managing associated risks like cyber threats.

Notes

  • Historically, the Bank of Namibia (BoN) expressed strong reservations about cryptocurrencies, discouraging their use and prohibiting the establishment of exchanges, citing concerns about the lack of a central issuing authority and associated risks.
  • In January 2025, the Bank of Namibia announced that it was issuing provisional operational permissions to two VASPs, Mindex Virtual Asset Exchange and Landifa Bitcoin Trade CC, for six months, during which they are expected to meet all necessary licensing conditions and operate in a regulatory sandbox-like environment, without conducting business with the public.
  • The deadline for Namibia's Financial Intelligence Centre (FIC)'s 26 September directive for any Virtual Asset Service Providers (VASPs) who want to do business in Namibia to register is 13 October 2023.

Detailed Explanation

Namibia has transitioned to a regulated environment for virtual assets, allowing individuals to buy, sell, and hold cryptocurrencies through licensed Virtual Asset Service Providers (VASPs). This shift is formalized by the Namibia Virtual Assets Act, 2023 (Act No. 10 of 2023), which provides a legal framework for regulating VASPs operating within the country. While cryptocurrencies are not recognized as legal tender, the Act aims to ensure consumer protection, prevent market abuse, and mitigate risks related to money laundering and terrorism financing. The Act designates the Bank of Namibia (BoN) as the Regulatory Authority responsible for overseeing the licensing and supervision of VASPs. Historically, the BoN had expressed strong reservations about cryptocurrencies, stating in 2017 and 2018 that they were not legal tender and discouraging their use. However, in 2022, the BoN indicated a shift, announcing that Bitcoin could be used as a form of payment at a merchant's discretion. In January 2025, the BoN issued provisional operational permissions to two VASPs, Mindex Virtual Asset Exchange and Landifa Bitcoin Trade CC, for six months, requiring them to meet all necessary licensing conditions and operate in a regulatory sandbox-like environment without conducting business with the public. VASPs are subject to specific regulations, including AML/CFT requirements and KYC obligations, with the Financial Intelligence Centre (FIC) playing a role in AML/CFT oversight. Non-compliant providers face significant penalties, including fines and imprisonment. Despite these regulatory advancements, the BoN continues to emphasize that cryptocurrencies are not legal tender and maintains that individuals who own, utilize, or trade in virtual currencies do so at their own risk. The Namibia Financial Institutions Supervisory Authority (NAMFISA) is also involved in updating regulatory frameworks to address challenges in digital finance and managing associated risks.

Summary Points

Retail Trading of Cryptocurrencies in Namibia: Regulatory Status (June 2025)

1. Overall Regulatory Status:

  • Allowed-Regulated: Retail trading of cryptocurrencies is permitted but strictly regulated.
  • Cryptocurrencies are not legal tender.
  • Acceptance of cryptocurrencies for payments is at the discretion of individuals and businesses.
  • Individuals trade at their own risk with no recourse to the Bank of Namibia (BoN) for losses.

2. Key Regulatory Bodies & Roles:

  • Bank of Namibia (BoN):
    • Designated as the Regulatory Authority under the Virtual Assets Act, 2023.
    • Responsible for licensing and supervising Virtual Asset Service Providers (VASPs).
    • Issues operational permissions to VASPs.
    • Maintains stance that cryptocurrencies are not legal tender.
  • Financial Intelligence Centre (FIC):
    • Responsible for AML/CFT oversight of VASPs.
    • Requires VASPs to register and implement AML/CFT policies.
  • Namibia Financial Institutions Supervisory Authority (NAMFISA):
    • Updates regulatory frameworks to address digital finance challenges, including cryptocurrency.
    • Manages risks associated with digital finance, such as cyber threats.
    • Complements the BoN's oversight of the financial sector.

3. Important Legislation & Regulations:

  • Namibia Virtual Assets Act, 2023 (Act No. 10 of 2023):
    • Provides the legal framework for regulating VASPs.
    • Aims to ensure consumer protection, prevent market abuse, and mitigate AML/CFT risks.
    • Defines VASPs as entities providing virtual asset services on behalf of others.
    • Establishes the Regulatory Authority (BoN) with licensing and supervisory powers.
    • Imposes penalties for non-compliance (up to $671,000 and 10 years imprisonment).
  • FIC Directives:
    • VASPs must register with the FIC.
    • VASPs must develop and implement AML/CFT policies and procedures.

4. Requirements for Compliance (VASPs):

  • Licensing: VASPs must obtain a license from the BoN.
  • AML/CFT:
    • Register with the FIC.
    • Implement KYC (Know Your Customer) procedures.
    • Develop and maintain AML/CFT policies and procedures.
    • Manage risks associated with money laundering, terrorism financing, and proliferation financing.
  • Operational Requirements:
    • Adhere to operational guidelines set by the BoN.
    • Comply with consumer protection measures.

5. Notable Restrictions & Limitations:

  • Non-Legal Tender Status: Cryptocurrencies are not legal tender in Namibia.
  • Merchant Discretion: Acceptance of cryptocurrencies for payments is at the merchant's discretion.
  • Consumer Risk: Individuals trade at their own risk with no recourse to the BoN for losses.
  • Provisional Licenses (Current Status):
    • VASPs with provisional licenses operate in a "regulatory sandbox" environment.
    • Provisional licensees are restricted from conducting business with the public until full licensing is obtained.

6. Recent Developments & Changes:

  • July 2023: Enactment of the Namibia Virtual Assets Act, 2023.
  • January 2025: BoN issued provisional operational permissions to two VASPs (Mindex Virtual Asset Exchange and Landifa Bitcoin Trade CC) for six months.
  • Ongoing: NAMFISA continues to update regulatory frameworks to address digital finance challenges.

Full Analysis Report

Report on the Current Status of Retail Trading of Cryptocurrencies in Namibia

Date: 2025-06-26

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).

1. Identified Status

Allowed-Regulated

2. Detailed Narrative Explanation

Namibia has transitioned from a position of caution and outright bans on certain cryptocurrency activities to a regulated environment for virtual assets. While cryptocurrencies are still not recognized as legal tender, the legal framework for individuals to buy, sell, and hold them, as well as for Virtual Asset Service Providers (VASPs) to operate, has been established through the Namibia Virtual Assets Act, 2023 (Act No. 10 of 2023).

Historically, the Bank of Namibia (BoN) expressed strong reservations about cryptocurrencies. In 2017 and 2018, the BoN stated that cryptocurrencies were not legal tender and discouraged their use, prohibiting the purchase of goods and services with them and forbidding the establishment of exchanges. The BoN cited concerns about the lack of a central issuing authority and the risks associated with such assets.

However, this stance has evolved. In 2022, the BoN indicated a shift, announcing that Bitcoin could be used as a form of payment at a merchant's discretion, despite its non-legal tender status. A significant development occurred in July 2023 when the Namibia Virtual Assets Act, 2023, was signed into law. This Act provides a legal framework for the regulation of VASPs operating within the country and aims to ensure consumer protection, prevent market abuse, and mitigate risks related to money laundering and terrorism financing. The Act designates a Regulatory Authority, which the Minister of Finance later designated as the Bank of Namibia, to oversee the licensing and supervision of VASPs.

In January 2025, the Bank of Namibia announced that it was issuing provisional operational permissions to two VASPs, Mindex Virtual Asset Exchange and Landifa Bitcoin Trade CC, for six months. During this period, these entities are expected to meet all necessary licensing conditions and operate in a regulatory sandbox-like environment, without conducting business with the public. This step signifies the practical implementation of the new regulatory framework.

The Virtual Assets Act, 2023, and subsequent actions by the BoN indicate that retail trading of cryptocurrencies by individual citizens and residents is permitted, provided it is done through regulated VASPs. These VASPs are, or will be, subject to specific regulations, including AML/CFT (Anti-Money Laundering and Combating the Financing of Terrorism) requirements and KYC (Know Your Customer) obligations. The Financial Intelligence Centre (FIC) of Namibia also plays a role in the AML/CFT oversight of VASPs. VASPs are required to register with the FIC and implement policies to manage risks associated with financial crimes. Non-compliant providers face significant penalties, including fines and imprisonment.

Despite these regulatory advancements, the Bank of Namibia continues to emphasize that cryptocurrencies are not legal tender in Namibia. The acceptance of virtual assets for payments remains at the discretion of individuals and businesses. The BoN also maintains that individuals who own, utilize, or trade in virtual currencies do so at their own risk and will have no recourse to the Bank in the event of financial loss.

The Namibia Financial Institutions Supervisory Authority (NAMFISA) is also involved in updating regulatory frameworks to address challenges in digital finance, including cryptocurrency, and managing associated risks like cyber threats. NAMFISA's role complements the BoN's oversight of the financial sector.

Therefore, while individuals can legally participate in the cryptocurrency market, it is within a regulated environment where service providers must adhere to licensing and operational guidelines, including robust AML/KYC measures.

3. Specific, Relevant Text Excerpts

  • Namibia Virtual Assets Act, 2023 (Act No. 10 of 2023):

    • "The Namibia Virtual Assets Act 2023 became the first law in the country to lay out regulations for all activities related to cryptocurrency." (Summarized from)
    • "The new legislation is designed to provide a legal framework for crypto exchanges operating within the country. According to this bill, there will now be the Regulatory Authority in Namibia, with the power of licensing virtual assets service providers and supervising activities related to crypto. The law also aims at consumer protection, preventing market abuse, and money laundering."
    • "Non-compliant providers could reportedly face penalties of up to $671,000 (10 million Namibian dollars) and 10 years in prison."
    • "The VAA [Virtual Assets Act]...regulates the process whereby a virtual asset is transferred from the originator/ client, who places an order for the transfer of virtual assets with an originating virtual asset service provider, to the beneficiary virtual asset service provider..."
    • "The Minister, in Government Gazette 8148 (GN 218/2023) designated the Bank of Namibia as the Regulatory Authority [under the VAA]."

  • Bank of Namibia (BoN) Statements & Actions:

    • Regarding the 2022 stance: "However, it repealed the stance in 2022, announcing that bitcoin could be used as a form of payment at the merchant's discretion despite its non-legal status in the country."
    • January 2025 provisional licenses: "The Bank of Namibia has announced that it is issuing a temporary license to two virtual assets service providers (VASPs) in the country. The two firms are granted operational permission for six months, during which they are expected to put their houses in order to obtain full licensing." "Namibia's apex bank asked the two cryptocurrency companies, Mindex Virtual Asset Exchange and Landifa Bitcoin Trade CC, to meet all necessary licensing conditions within the timeframe provided."
    • Conditions for provisional licenses: "In addition, within this period, the companies are only permitted to operate in a regulatory sandbox-like environment and are restricted from conducting business with the public." "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. This restriction ensures that all regulatory compliance requirements are fully met before operations begin.”
    • On legal tender status: "The Bank of Namibia (BoN) is maintaining its stance that cryptocurrencies and virtual assets are not yet authorised as legal tender for transactions involving goods and services within the country. This is despite a parliament-approved law regulating these currencies."
    • On consumer risk: “Public members who own, utilise and/or trade in virtual currencies do so at their own risk, and any misfortune or losses incurred will have no recourse to the bank,” BoN spokesperson Kazembire Zemburuka says.

  • Financial Intelligence Centre (FIC) Requirements:

    • "The deadline for Namibia's Financial Intelligence Centre (FIC)'s 26 September directive for any Virtual Asset Service Providers (VASPs) who want to do business in Namibia to register is 13 October 2023."
    • "Virtual Asset Service Providers (VASP) in Namibia are defined according to the Virtual Assets Act of 2023 as any person or entity that, as a business, provides virtual asset services on behalf of others. Whether you are a local VASP or a foreign entity targeting the Namibian market, compliance is mandatory."
    • VASPs must "Develop and provide a policy document or standard operating procedures outlining how your VASP manages risks associated with money laundering, terrorism financing, and proliferation financing. Controls to mitigate these risks should be in place."

4. Direct, Accessible URL Links to Specific Sources

  • Freeman Law - Namibia and Cryptocurrency: https://freemanlaw.com/namibia-and-cryptocurrency/ (Note: While this article states crypto is illegal, it reflects an older regulatory stance prior to the 2023 Act and subsequent developments. It provides historical context.)
  • Mariblock - Namibia steps up crypto regulations, grants licenses to two crypto firms (January 14, 2025): https://mariblock.com/namibia-shores-up-crypto-regulations-grants-provisional-licenses-to-two-crypto-firms/
  • itez - Namibia now regulates crypto (July 27, 2023): https://itez.com/blog/company-news/namibia-now-regulates-crypto
  • Cointelegraph - Namibia Signs Crypto Exchange Regulation Bill Into Law (July 25, 2023): https://cointelegraph.com/news/namibia-signs-crypto-exchange-regulation-bill-into-law (Also available at TradingView: https://www.tradingview.com/news/cointelegraph:20230725:24043-namibia-signs-crypto-exchange-regulation-bill-into-law/)
  • Bitcoin.com News - Namibia Flips the Script: Central Bank Grants Provisional Approval to Crypto Firms (January 16, 2025): https://news.bitcoin.com/namibia-flips-the-script-central-bank-grants-provisional-approval-to-crypto-firms/
  • Cronje Inc - Cryptocurrency in Namibia: https://cronjeinc.com/cryptocurrency-in-namibia/ (Provides historical context on BoN's earlier stance.)
  • bne IntelliNews - Namibia's government grants nation's first cryptocurrency exchange licences (January 16, 2025): https://www.intellinews.com/namibia-s-government-grants-nation-s-first-cryptocurrency-exchange-licences-308500/
  • Bowmans - Namibia: The Virtual Assets Act 10 of 2023 – What should you know? (Undated, Act promulgated July 25, 2023): https://www.bowmanslaw.com/insights/banking-and-financial-services-regulatory/namibia-the-virtual-assets-act-10-of-2023-what-should-you-know/
  • The Namibian - Cryptocurrency not legal payment method in Namibia yet (August 1, 2023): https://www.namibian.com.na/cryptocurrency-not-legal-payment-method-in-namibia-yet/
  • Africa Outlook Magazine - NAMFISA : Championing Economic Integrity and Security (April 28, 2025, referencing 2024 activities): https://www.africaoutlookmag.com/finance/article/5900-namfisa-championing-economic-integrity-and-security
  • Namibia Financial Institutions Supervisory Authority (NAMFISA) - Official Website: https://www.namfisa.com.na/
  • ZenDetect - Crypto Registration Namibia: Exchanges Have Less Than a Week to Register (March 6, 2024, referencing October 2023 deadline): https://www.zendetect.com/blog-posts/crypto-registration-namibia-exchanges-have-less-than-a-week-to-register
  • ESAAMLG - Anti-money laundering and Counter-terrorist financing measures NAMIBIA (Follow-up report, likely post-September 2022 MER): https://www.esaamlg.org/reports/FUR%20Namibia%202023.pdf (General AML/CFT context)

Web Sources (14)

Sources discovered via web search grounding

Search queries used (6)
  • Retail cryptocurrency trading status Namibia 2025
  • Namibia cryptocurrency regulation Bank of Namibia
  • Namibia Financial Institutions Supervisory Authority (NAMFISA) cryptocurrency
  • Legal status of Bitcoin in Namibia
  • Namibian government statements on cryptocurrency
  • AML/KYC requirements for crypto exchanges in Namibia
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