Financial Crime World

Namibia Takes Step towards Regulating Cryptocurrency Amidst Concerns over Financial Crime

The government of Namibia has taken a significant step towards regulating the cryptocurrency industry to curb financial crime and ensure consumer protection. The country has passed the Namibia Virtual Assets Act 2023, which designates a regulatory authority to oversee the virtual asset industry.

Curbing Financial Crime and Ensuring Consumer Protection

The law aims to regulate and supervise virtual asset service providers and related activities, thereby preventing market abuse and money laundering. This move comes as nations around the world are tightening their grip on cryptocurrency-related activities.

Background of the Law

Namibia’s first bill outlining how crypto should be treated was passed by the National Assembly last month and has been gazetted, making it law. However, according to Diana Vivo, an associate at Ellis Shilengudwa Incorporated, a part of DLA Piper Africa, the law will only become effective on a date yet to be determined by the Minister of Finance of Namibia.

Key Provisions

  • Designates a regulatory authority to oversee the virtual asset industry
  • Grants powers to license virtual asset service providers and make new laws
  • Aimed at preventing market abuse and money laundering

Namibia’s move towards regulating the virtual asset industry is seen as a significant step in curbing financial crime and ensuring consumer protection. The country joins other nations in adopting stricter regulations to prevent money laundering and market abuse.

Recent Developments

  • South Africa recently opened up a crypto licensing regime
  • European Union, UK, and South Korea are also increasing their regulation of cryptocurrency-related activities

Next Steps

Stakeholders are eagerly awaiting the Minister of Finance’s decision on when the law will come into effect. With the law set to become effective at a later date, it is likely that virtual asset service providers will need to apply for licenses and comply with new regulations.