• Namibia’s Virtual Assets Act 2023 enforces strict crypto remittance regulations and licensing.

• Namibia officially signed a law to regulate cryptocurrency exchanges, reversing its 2017 ban decision

• Other African countries have either imposed bans or introduced regulations for cryptocurrencies.

Crypto remittance regulations are a growing concern now more than ever amid the digital asset hype in Africa. Veteran players like Mauritius, South Africa, and Nigeria have continuously set the pace for crypto laws, but this article shines light on an unsung hero: the Namibia Virtual Assets Act 2023.

Let’s dive in and explore the latest developments of Namibia’s growing crypto regulatory environment, focusing more on crypto remittance regulations, consumer protections, and the broader implications.

Namibia’s Progressive Approach to Crypto Remittance Regulations

The Evolution of Crypto Remittance Regulations in Namibia

Namibia’s journey towards cryptocurrency exchange regulation started in May 2018. This was when the Bank of Namibia reversed its initial decision to ban cryptocurrency exchanges.

Since then, the country has been working towards creating a comprehensive regulatory environment for the cryptocurrency industry. Finally enacted in 2023, the Namibia Virtual Assets Act reversed the nation’s 2017 crypto ban, prioritizing anti-money laundering (AML) measures and consumer protection.

CHECK OUT: The African Crypto Code: Regulating Digital Currency Across Borders.

By 2025, the Act has enabled provisional licenses for platforms like Mindex Virtual Asset Exchange and Landifa Bitcoin Trade CC, which now adhere to strict crypto remittance regulations under the Bank of Namibia (BoN). Key provisions include:

• Namibia crypto penalties for non-compliance: Fines up to NAD 10 million ($671,572) or 10-year imprisonment for unlicensed VASPs.
• Mandatory Travel Rule compliance for transactions exceeding NAD 20,000 ($1,056), requiring sender/receiver details to curb illicit flows.

As per the document, the Bank of Namibia serves as the primary regulator under the VAA alongside the Namibia Financial Institutions Supervisory Authority.

Provisional Authorization Process

To implement the new law effectively, the regulatory authorization is a two-step process. The first includes an initial assessment, resulting in a provisional license issued with specific pre-authorization conditions.

If the organization in question meets the conditions, they are granted a fully operational license.

The provisional period lasts up to six months, with companies tasked with establishing their operations, acquiring necessary equipment, and implementing software to facilitate services, i.e., crypto trading, exchanges, and crypto ATMs.

As a precaution, the organizations are restricted from conducting or engaging in any business with the public.

Kazembire Zemburuka, the Bank of Namibia’s spokesperson.[Photo: TheBrief]

Enhanced Reporting Requirements

Crypto scams in Namibia is still a concern, given that the market has seen even well-established companies vanish in thin air.

To combat those, the region has focused on strengthening its reporting framework for crypto-related transactions, including over-the-counter (OTC) derivatives.

This aligns the Namibia Virtual Assets Act 2023 with international standards, increasing transparency and reducing potential risks.

Regulatory Gaps and Future Needs

How to comply with Namibia crypto regulations involves various steps such as:

1. Register with NAMFISA
   • Submit incorporation documents and “fit and proper” attestations.
   • Pay the provisional‑license fee and outline your six‑month rollout plan.
2. Implement AML/CFT controls
   • Adopt transaction‑monitoring software meeting the Travel Rule.
   • Conduct periodic risk assessments.
3. Engage with the Bank of Namibia
   • Schedule inspections once infrastructure is in place.
   • Address any gaps promptly to secure full licensing.

However, this does present some gaps within their framework. For instance, the country lacks a crypto tax framework “fit for purpose,” as Namibia doesn’t tax digital assets, even for capital gains.

This creates a massive gap of revenue for its government, but does put a smile on many crypto traders.

The Bank of Namibia crypto stance remains cautious, stating they still will not consider digital assets as legal tenders due to various concerns.

However, they are open to the innovations aiming to protect users and avoid directly suggesting best crypto for remittances. This creates a somewhat neutral stance for the nation seeking proper adoption and protection for its citizens.

The Road Ahead: Remittances and Regional Leadership

Namibia’s crypto remittance regulations position it alongside South Africa, Mauritius, and Nigeria as Africa’s regulatory leaders.

As Africa’s cryptocurrency landscape continues to evolve, regulatory frameworks will play a crucial role in shaping the industry’s future in the region.

Striking a balance between fostering innovation and safeguarding consumers and financial systems remains a complex challenge for policymakers.

Nonetheless, the increasing engagement of African countries with cryptocurrency regulation highlights the growing importance of digital assets in the global financial landscape