Stefanus Nashama
BANK of Namibia (BoN) says the country has approved laws for the first time to license and regulate virtual asset service providers and initial token offering service providers.
This was revealed by BoN Director of Strategic Communications and International Relations, Kazembire Zemburuka yesterday.
BoN will administer the Virtual Assets Act, 2023 (Act No. 10 of 2023) (VAA), which went into effect on July 25.
“Before the landmark legislation was enacted, Namibia identified virtual assets as a growing threat avenue for generating and laundering proceeds of crime, with the banking sector and members of the general public being the primary targets,” he said.
The Act, according to Zemburuka, aims to limit the hazards connected with investing in virtual assets, which the central bank has previously warned the public about.
Meanwhile, BoN Governor, Johannes !Gawaxab, stated the ability of the monetary system to work successfully is dependent on public trust in the system.
He stated that while new technologies, products, and related services have the ability to stimulate financial innovation and efficiency while also improving financial inclusion, they also provide chances for criminals to launder their proceeds or finance their unlawful operations.
He also underlined the need of regulating virtual assets and virtual asset activities for financial stability, as well as the consequences for monetary policy.
“The move to regulate virtual assets is thus a significant step toward providing greater legal and regulatory certainty to both the general public and the financial services industry,” the Governor stated.
According to Zemburuka, Namibia has become the third Sub-Saharan African country to take aggressive legislative steps to regulate this sector and properly safeguard the public from potential hazards and services provided by this industry.
The Financial Intelligence Centre (FIC) will continue to perform the industry’s Anti-Money Laundering and Combating the Financing of Terrorism and Proliferation registration, licensing, and oversight.
He noted that the goal is to detect and combat money laundering, terrorist and proliferation financing, as well as other financial crimes and financial system misuse.
“As for virtual currencies, they will not have the same legal tender status as the Namibian Dollar. Acceptance of virtual currencies as payment for goods and services will be at the discretion of any merchant or buyer wishing to participate in such an exchange or trade,” Zemburuka emphasised.
According to Section 5 of the VAA, the Minister of Finance and Public Enterprises has appointed the Bank as the industry’s prudential regulating authority.
