The Bank of Namibia has issued its first provisional licenses to two cryptocurrency exchanges, marking a significant step in the development of the virtual assets sector in the country.
Provisional Permits for Crypto Exchanges
The Bank of Namibia has granted provisional licenses 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.
Conditions for Final Approval
The provisional licenses, valid for six months, allow companies to establish 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.
Regulation of Virtual Assets in Namibia
The licenses are issued under the Virtual Assets Act, approved by the National Assembly and signed by former President Hage Geingob in July 2023. Non-compliance may lead to severe penalties. The Bank of Namibia oversees providers' adherence to measures against financial crimes.
The provisional licenses from the central bank are a crucial step in the advancement of Namibia's cryptocurrency sector, signaling the need for virtual asset regulation to other countries.
