Namibia
Retail_Trading_Status
Status Changed
Previous status: Gray-Zone
Reconciled from live analysis after human review confirmed status as Allowed-Regulated. The Live analysis correctly identifies the enactment of the Virtual Assets Act, 2023, which establishes a licensing framework for VASPs, and the active regulatory role of the Bank of Namibia. The Latest analysis incorrectly classified the status as Gray-Zone based on the provisional nature of current licenses, but the presence of a full VASP licensing law in force and an active regulator overseeing the process meets the criteria for Allowed-Regulated status. New factual information from the Latest analysis regarding provisional license restrictions and the ban on unlicensed foreign exchanges was incorporated as supporting details.
- Analysis ID
- #884
- Version
- Latest
- Created
- 2025-12-13 08:32
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- 401adddc...
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- Reconciled
Executive Summary
Namibia has established a regulated environment for retail cryptocurrency trading through the Namibia Virtual Assets Act, 2023. While cryptocurrencies are not legal tender, individuals can legally 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. As of late 2025, the BoN has issued provisional operational permissions to two VASPs, though they are currently prohibited from conducting business with the public until full licensing conditions are met. VASPs must comply with AML/CFT regulations and KYC obligations, and the Act effectively bans unlicensed foreign exchanges from operating in Namibia.
Key Pillars
The regulatory framework in Namibia is built upon the Bank of Namibia (BoN) as the primary prudential regulator and licensing authority for Virtual Asset Service Providers (VASPs). 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. A provisional licensing regime exists where entities must first meet compliance conditions in a sandbox-like environment before being authorized to serve the public.
Landmark Laws
- Namibia Virtual Assets Act, 2023 (Act No. 10 of 2023):
- Date of issue: July 25, 2023
- Summary: Provides a legal framework for the licensing and 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. Non-compliant providers could face penalties of up to $671,000 (10 million Namibian dollars) and 10 years in prison.
- Payment System Management Act, 2023 (Act No. 14 of 2023):
- Date of issue: July 21, 2023
- Summary: Complementary legislation governing payment service providers, under which some fintech entities exploring virtual assets may also fall.
- Directive No. 06 of 2023 (FIC Directive 06/2023):
- Date of issue: September 26, 2023
- Summary: Issued by the Financial Intelligence Centre, requiring all VASPs to register with the FIC and comply with the Financial Intelligence Act, 2012, regardless of their licensing status with BoN.
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.
- As of late 2025, provisional licenses issued by the BoN explicitly prohibit licensees from conducting business with the public until full requirements are met.
- The Virtual Assets Act, 2023, effectively criminalizes the operation of foreign, unlicensed exchanges targeting Namibian residents.
- Banks remain cautious and await fully licensed VASPs before opening standard banking rails.
Notes
- Historically, the Bank of Namibia (BoN) expressed strong reservations about cryptocurrencies, discouraging their use and prohibiting the establishment of exchanges.
- In January 2025, the Bank of Namibia announced 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. This provisional authorization for Mindex was later extended to November 2025.
- 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 was 13 October 2023.
- NAMFISA is involved in updating regulatory frameworks to address challenges in digital finance, including cryptocurrency, and managing associated risks like cyber threats.
Remaining Uncertainties
- Whether Mindex Virtual Asset Exchange successfully obtained a full operational license after the November 21, 2025 extension deadline.
- The extent of active enforcement against foreign exchanges (e.g., website blocking, payment blocking) under the new Act.
- The specific timeline for when the Bank of Namibia will allow provisional licensees to commence public operations.
Detailed Explanation
Detailed Explanation
Namibia has established a regulated environment for retail cryptocurrency trading, categorizing it as 'Allowed-Regulated.' This status is defined by the Namibia Virtual Assets Act, 2023 (Act No. 10 of 2023), which provides the legal framework for licensing and regulating Virtual Asset Service Providers (VASPs). The Act designates the Bank of Namibia (BoN) as the primary Regulatory Authority responsible for VASP licensing and supervision, with the core objectives of ensuring consumer protection, preventing market abuse, and mitigating risks related to money laundering and terrorism financing. Complementary legislation includes the Payment System Management Act, 2023, and the Financial Intelligence Centre's Directive No. 06 of 2023, which mandates all VASPs to register with the FIC and comply with the Financial Intelligence Act, 2012. The regulatory framework mandates that VASPs must obtain licensing or registration with the BoN and the FIC, adhere to AML/CFT regulations, and fulfill KYC obligations. A provisional licensing regime exists where entities must first meet compliance conditions in a sandbox-like environment before being authorized to serve the public. As of late 2025, the BoN has issued provisional operational permissions to two VASPs, Mindex Virtual Asset Exchange and Landifa Bitcoin Trade CC, but these entities are explicitly prohibited from conducting business with the public until they meet all full licensing conditions. The Act effectively bans unlicensed foreign exchanges from operating in Namibia, and cryptocurrencies are not legal tender, meaning 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. Banks remain cautious and await fully licensed VASPs before opening standard banking rails.
Summary Points
I. Regulatory Status
* Namibia's status is Allowed-Regulated for retail cryptocurrency trading.
* Cryptocurrencies are not legal tender but can be legally bought, sold, and held via licensed Virtual Asset Service Providers (VASPs).
* The regulatory framework is established by the Namibia Virtual Assets Act, 2023.
II. Key Regulatory Bodies
* Bank of Namibia (BoN): The primary prudential regulator and licensing authority for VASPs, designated as the Regulatory Authority by the Virtual Assets Act.
* Financial Intelligence Centre (FIC): Requires VASP registration and compliance with AML/CFT obligations under the Financial Intelligence Act, 2012.
* NAMFISA: Involved in updating regulatory frameworks to address challenges in digital finance, including cryptocurrency, and managing associated risks like cyber threats.
III. Important Legislation
* Namibia Virtual Assets Act, 2023 (Act No. 10 of 2023):
* Date of issue: July 25, 2023.
* Provides the legal framework for licensing and regulating VASPs.
* Aims to ensure consumer protection, prevent market abuse, and mitigate ML/TF risks.
* Designates the Bank of Namibia as the Regulatory Authority.
* Non-compliant providers face penalties of up to $671,000 (10 million Namibian dollars) and 10 years in prison.
* Payment System Management Act, 2023 (Act No. 14 of 2023):
* Date of issue: July 21, 2023.
* Complementary legislation governing payment service providers, under which some fintech entities exploring virtual assets may also fall.
* Directive No. 06 of 2023 (FIC Directive 06/2023):
* Date of issue: September 26, 2023.
* Issued by the Financial Intelligence Centre, requiring all VASPs to register with the FIC and comply with the Financial Intelligence Act, 2012, regardless of their licensing status with BoN.
* The registration deadline was October 13, 2023.
IV. Compliance Requirements
* VASPs must obtain licensing or registration with the Bank of Namibia (BoN) and the Financial Intelligence Centre (FIC).
* VASPs must comply with AML/CFT regulations and KYC obligations.
* A provisional licensing regime exists where entities must first meet compliance conditions in a sandbox-like environment before being authorized to serve the public.
V. Notable Restrictions or Limitations
* 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.
* As of late 2025, provisional licenses issued by the BoN explicitly prohibit licensees from conducting business with the public until full requirements are met.
* The Virtual Assets Act, 2023, effectively criminalizes the operation of foreign, unlicensed exchanges targeting Namibian residents.
* Banks remain cautious and await fully licensed VASPs before opening standard banking rails.
VI. Recent Developments or Notes
* Historically, the Bank of Namibia (BoN) expressed strong reservations about cryptocurrencies, discouraging their use and prohibiting the establishment of exchanges.
* In January 2025, the BoN announced it was issuing provisional operational permissions to two VASPs: Mindex Virtual Asset Exchange and Landifa Bitcoin Trade CC.
* This permission was 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 provisional authorization for Mindex was later extended to November 2025.
* The deadline for the FIC's 26 September directive for VASPs to register was 13 October 2023.
Full Analysis Report
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.
1. Identified Status
Allowed-Regulated
2. Detailed Narrative Explanation
Namibia has established a comprehensive regulatory framework for virtual assets through the Namibia Virtual Assets Act, 2023 (Act No. 10 of 2023). This law legalizes and regulates the provision of cryptocurrency services, designating the Bank of Namibia (BoN) as the licensing and supervisory authority for Virtual Asset Service Providers (VASPs). Retail trading of cryptocurrencies by individuals is permitted through licensed VASPs.
The BoN has moved to implement this framework. In January 2025, it granted provisional operational permissions to two VASPs: Mindex Virtual Asset Exchange and Landifa Bitcoin Trade CC. These entities are required to meet all licensing conditions within a specified period (extended for Mindex to November 2025) and are currently prohibited from conducting business with the public during this provisional phase. This represents a transitional step towards full market operation under the new law.
All VASPs must also register with the Financial Intelligence Centre (FIC) and comply with AML/CFT regulations under FIC Directive No. 06 of 2023. The Virtual Assets Act imposes severe penalties, including fines up to N$10 million and 10 years imprisonment, for operating without a license, effectively banning unlicensed foreign exchanges from the Namibian market.
While the BoN maintains that cryptocurrencies are not legal tender and that users transact at their own risk, the enactment of the Virtual Assets Act and the active licensing process by the BoN create a regulated environment where retail trading is legally allowed through licensed channels. The current provisional licensing stage does not negate the established legal framework but represents its phased implementation.
3. Specific, Relevant Text Excerpts
- Namibia Virtual Assets Act, 2023 (Act No. 10 of 2023): "To provide for the licensing and regulation of virtual asset service providers... and to provide for incidental matters."
- Bank of Namibia (BoN) Provisional Authorization Notice (2025-01-13): "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."
- Financial Intelligence Centre Directive No. 06 of 2023: "The Virtual Assets Act, 2023, as per sections 7 to 10, require VASPs to be licensed and registered with the regulatory authority. Such authority is the Bank of Namibia (BoN)."
- Bank of Namibia Spokesperson (2023): "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."
4. Direct, Accessible URL Links to Specific Sources
- Bank of Namibia - Provisional Authorisation Notice:
https://www.bon.com.na/CMSTemplates/Bon/Files/bon.com.na/90/90d8c518-f9a2-4e6d-98a4-b192c1a93253.pdf - Namibia Virtual Assets Act, 2023:
https://namiblii.org/akn/na/act/2023/10/eng@2023-07-21 - Financial Intelligence Centre - Directive No. 06 of 2023:
https://www.fic.na/index.php?page=2023-directives - 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/ - Cointelegraph - Namibia Signs Crypto Exchange Regulation Bill Into Law (July 25, 2023):
https://cointelegraph.com/news/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/ - AllAfrica - Namibia: Central Bank Tests Waters On Crypto-Licences (August 19, 2025):
https://allafrica.com/stories/202508190001.html - Finance Magnates - Namibia Repeals Crypto Ban with New Regulations for Exchanges (July 26, 2023):
https://www.financemagnates.com/cryptocurrency/regulation/namibia-repeals-crypto-ban-with-new-regulations-for-exchanges/
**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. **1. Identified Status** Allowed-Regulated **2. Detailed Narrative Explanation** Namibia has established a comprehensive regulatory framework for virtual assets through the Namibia Virtual Assets Act, 2023 (Act No. 10 of 2023). This law legalizes and regulates the provision of cryptocurrency services, designating the Bank of Namibia (BoN) as the licensing and supervisory authority for Virtual Asset Service Providers (VASPs). Retail trading of cryptocurrencies by individuals is permitted through licensed VASPs. The BoN has moved to implement this framework. In January 2025, it granted provisional operational permissions to two VASPs: Mindex Virtual Asset Exchange and Landifa Bitcoin Trade CC. These entities are required to meet all licensing conditions within a specified period (extended for Mindex to November 2025) and are currently prohibited from conducting business with the public during this provisional phase. This represents a transitional step towards full market operation under the new law. All VASPs must also register with the Financial Intelligence Centre (FIC) and comply with AML/CFT regulations under FIC Directive No. 06 of 2023. The Virtual Assets Act imposes severe penalties, including fines up to N$10 million and 10 years imprisonment, for operating without a license, effectively banning unlicensed foreign exchanges from the Namibian market. While the BoN maintains that cryptocurrencies are not legal tender and that users transact at their own risk, the enactment of the Virtual Assets Act and the active licensing process by the BoN create a regulated environment where retail trading is legally allowed through licensed channels. The current provisional licensing stage does not negate the established legal framework but represents its phased implementation. **3. Specific, Relevant Text Excerpts** * **Namibia Virtual Assets Act, 2023 (Act No. 10 of 2023):** "To provide for the licensing and regulation of virtual asset service providers... and to provide for incidental matters." * **Bank of Namibia (BoN) Provisional Authorization Notice (2025-01-13):** "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." * **Financial Intelligence Centre Directive No. 06 of 2023:** "The Virtual Assets Act, 2023, as per sections 7 to 10, require VASPs to be licensed and registered with the regulatory authority. Such authority is the Bank of Namibia (BoN)." * **Bank of Namibia Spokesperson (2023):** "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." **4. Direct, Accessible URL Links to Specific Sources** * Bank of Namibia - Provisional Authorisation Notice: `https://www.bon.com.na/CMSTemplates/Bon/Files/bon.com.na/90/90d8c518-f9a2-4e6d-98a4-b192c1a93253.pdf` * Namibia Virtual Assets Act, 2023: `https://namiblii.org/akn/na/act/2023/10/eng@2023-07-21` * Financial Intelligence Centre - Directive No. 06 of 2023: `https://www.fic.na/index.php?page=2023-directives` * 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/` * Cointelegraph - Namibia Signs Crypto Exchange Regulation Bill Into Law (July 25, 2023): `https://cointelegraph.com/news/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/` * AllAfrica - Namibia: Central Bank Tests Waters On Crypto-Licences (August 19, 2025): `https://allafrica.com/stories/202508190001.html` * Finance Magnates - Namibia Repeals Crypto Ban with New Regulations for Exchanges (July 26, 2023): `https://www.financemagnates.com/cryptocurrency/regulation/namibia-repeals-crypto-ban-with-new-regulations-for-exchanges/`
Source Evidence
Primary and secondary sources cited in this analysis
"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."
"To provide for the licensing and regulation of virtual asset service providers... and to provide for incidental matters."
"The Virtual Assets Act, 2023, as per sections 7 to 10, require VASPs to be licensed and registered with the regulatory authority. Such authority is the Bank of Namibia (BoN)."
"The bank is currently conducting due diligence... Additionally, the bank has extended the provisional authorisation of Mindex Virtual Asset Exchange... until 21 November."
"Any crypto provider in the country not complying with the local laws will face a monetary penalty of up to 10 million Namibian dollars."
"The Bank of Namibia has announced that it is issuing a temporary license to two virtual assets service providers (VASPs) in the country."
"The new legislation is designed to provide a legal framework for crypto exchanges operating within the country."
Web Sources (14)
Sources discovered via web search grounding
Search queries used (9)
- Namibia Virtual Assets Act commencement date
- Namibia crypto regulation retail trading status
- Namibia Virtual Assets and Virtual Asset Service Providers Act 2023 status
- Bank of Namibia cryptocurrency position 2024 2025
- NAMFISA virtual asset service provider license list
- Is Binance legal in Namibia 2025
- Namibia ban on foreign crypto exchanges enforcement
- Bank of Namibia VASP full license issuance 2025
- Mindex Namibia full virtual asset license granted November 2025
https://www.mariblock.com/namibia-shores-up-crypto-regulations-grants-provisional-licenses-to-two-crypto-firms/
https://thebrief.com.na/2025/01/bon-grants-4-entities-payment-and-virtual-asset-licences/
https://www.intellinews.com/namibia-s-government-grants-nation-s-first-cryptocurrency-exchange-licences-361865/
https://www.bitget.com/news/detail/12560604503894
https://www.binance.com/en/square/post/2023-07-26-namibia-signs-crypto-exchange-regulation-bill-into-law-858092
https://news.bitcoin.com/namibia-flips-the-script-central-bank-grants-provisional-approval-to-crypto-firms/
https://www.bon.com.na/Informations/Media/Media-Releases/2024-Media-Releases/Articles/13-01-2025-Provisional-Authorisation-Granted-to-Ne.aspx
https://thebanks.eu/list-of-vasps
https://cryptoassetbuyer.com/bank-of-namibia-provisional-licenses-vasps/
https://www.binance.com/en-AE/square/post/2023-07-26-namibia-signs-crypto-exchange-regulation-bill-into-law-858092
https://www.financemagnates.com/cryptocurrency/namibia-repeals-crypto-ban-with-new-regulations-for-exchanges/
https://allafrica.com/stories/202508200592.html
https://www.bon.com.na/Informations/Media/Media-Releases/2024-Media-Releases/Articles/13-01-2025-Provisional-Authorisation-Granted-to-Ne.aspx
https://www.namibian.com.na/cryptocurrencies-not-legal-tender-bank-of-namibia-insists/