Bank of Namibia grants provisional licenses to two crypto exchanges

Namibia’s central bank has granted the first set of provisional licenses to two cryptocurrency exchanges.

According to local media, citing a recent media statement from the regulator, the Bank of Namibia has granted provisional authorization to Mindex Virtual Asset Exchange (Pty) Ltd. and Landifa Bitcoin Trade CC to operate as virtual asset service providers.

However, they won’t be able to offer services to the public until they receive final approval from the central bank. The provisional licenses, valid for six months, allow the companies to establish their operations, hire staff, and set up the required infrastructure.

Final approval will only be granted if the companies meet all requirements mandated by the central bank. 

Kazembire Zemburuka, a spokesperson for the bank, clarified that if the companies complete their setup and are ready before the six-month period concludes, the central bank can inspect their operations and grant approval earlier, allowing them to engage with the public ahead of the overall timeline.

The preliminary licenses were granted under the Virtual Assets Act, which was approved by the country’s National Assembly and subsequently signed by former President Hage Geingob in July of 2023.

Under the Namibia Virtual Assets Act 2023, non-compliant providers face severe penalties, including fines of up to 10 million Namibian dollars (approximately $527,983) and imprisonment for up to 10 years. 

The Bank of Namibia, as the regulatory authority designated by the act, retains oversight over virtual asset service providers to ensure they comply with measures aimed at preventing money laundering, terrorism financing, and other financial crimes.

Last year, Namibia was included in the Financial Action Task Force’s grey list, which identifies countries with strategic deficiencies in their AML/CFT regimes. In an October 2024 update, the intergovernmental policy-making body suggested the country should continue strengthening its countermeasures. 

Several other African nations have introduced laws to regulate the digital currency sector. Most recently, on Jan. 10, Keny opened up a public consultation for a draft law to regulate virtual assets. Other countries like Botswana, Mauritius, and Seychelles have also made similar moves.