The Bank of Namibia (BON) is currently reviewing provisional cryptocurrency licences to ensure compliance with regulatory requirements.
Three companies received provisional licences in January for six months.
However, earlier this year, two out of the three companies, Landifa Bitcoin Trade CC and United PayPoint (Pty), requested an extension until 31 July and 13 May, respectively.
“The bank is currently conducting due diligence to assess compliance with the conditions attached to the provisional authorisations of both entities,” BoN spokesperson Kazembire Zemburuka says.
Additionally, the bank has extended the provisional authorisation of Mindex Virtual Asset Exchange, upon its request, until 21 November.
“This extension has been granted to provide the applicant with additional time to finalise the operational and compliance arrangements required for full authorisation under the act,” Zemburuka says.
During the provisional period, the companies were to set up shop and procure the necessary equipment and software to be able to provide services such as cryptocurrency trading, exchanges, or ATM services.
Zemburuka says all regulatory conditions and restrictions applicable during the initial authorisation period remain in effect throughout the extended period.
Cryptocurrency trading is still illegal in Namibia.
In 2018, the bank made its stand known by saying it opposed using cryptocurrencies as a payment method for goods and services.
In a statement, the bank at the time said: “The bank does not currently recognise cryptocurrencies as a commodity nor support the trading of cryptocurrencies on any (domestic or international) financial market or currency exchange.”
However, in 2022 the bank announced that bitcoin could be used as a form of payment at a merchant’s discretion, despite its non-legal status in the country.
In June 2023, the National Assembly passed a bill to recognise and regulate digital assets.
The bill was signed into law a month later, banning all crypto-exchanges not based in the country and asking other virtual asset service providers to keep record of individuals transacting on their platforms.
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