Namibia grants provisional approval to crypto firms

On January 13, 2025, the Bank of Namibia announced it has granted provisional authorisation to Mindex Virtual Asset Exchange and Landifa Bitcoin Trade to operate as virtual asset service providers under the Virtual Asset Act of 2023.

This provisional approval marks the initial phase of a two-step licensing process, with specific conditions that must be fulfilled before full authorisation is granted.

The central bank emphasised that during the six-month provisional period, these entities cannot engage in any business activities within Namibia.

This development follows the passage of a bill in July 2023 aimed at regulating cryptocurrencies, which was intended to protect consumers and combat money laundering.

“When the associated risks that come with innovations such as virtual assets in the financial system are better managed, the bank will make the necessary assessments and pronounce itself on their acceptance,” Kazembire Zemburuka, a spokesperson for the Bank of Namibia, stated.

Despite this progress, the central bank continues to caution the public about the risks associated with cryptocurrencies, reiterating that they are not recognized as legal tender in Namibia.

The Bank remains committed to ensuring a secure financial environment and will provide updates on these entities' compliance efforts.