Namibia's central bank has granted the first set of temporary licenses to two digital currency exchanges.
According to local media, citing recent media report from the regulator, the Bank of Namibia has granted a provisional license to Mindex Virtual Asset Exchange (Pty) Ltd. and Landifa Bitcoin Trade CC to operate as virtual asset service providers.
However, they will not be able to offer services to the public until they receive final approval from the central bank. The temporary permitsvalid for six months, to allow the companies to establish their operations, hire employees, and establish the necessary infrastructure.
Final approval will only be given if the companies meet all the requirements prescribed by the central bank.
Kazembir Zemburuka, spokesperson for the bank, clarification if the companies complete the establishment and are ready before the end of the six-month period, the central bank can inspect their work and give approval earlier, allowing them to communicate with the public ahead of the overall timeline.
The preliminary permits were issued under the Virtual Assets Actwhich was approved by the country's National Assembly and later signed by former President Hage Geingob in July 2023.
Under Namibia's Virtual Assets Act 2023, there are severe penalties against non-compliant providers, 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, monitors virtual asset service providers to ensure compliance with measures aimed at preventing money laundering, terrorist financing and other financial crimes.
Last year, Namibia was included on the Financial Action Task Force's gray list, which identifies countries with strategic deficiencies in their AML/CFT regimes. In an update in October 2024, the intergovernmental policy-making body recommended that the country should continue to strengthen its measures.
Several other African countries have introduced laws to regulate the digital currency sector. Recently, on January 10, Kenneth opened public consultation for a draft law to regulate virtual assets. Other countries like Botswana, Mauritiusand Seychelles has also made similar moves.
