On Jan. 13, the Bank of Namibia announced provisional authorization for two entities, Mindex Virtual Asset Exchange and Landifa Bitcoin Trade, to operate as virtual asset service providers.
Provisional Authorization First Step in Two-Step Licensing Process
The Namibian central bank announced on Jan. 13 that it had granted provisional authorization to two entities to operate as virtual asset service providers (VASPs). Mindex Virtual Asset Exchange (Pty) Ltd and Landifa Bitcoin Trade CC received authorization under Namibia’s Virtual Asset Act of 2023 (Act No. 10 of 2023).
According to a statement from the Bank of Namibia, the provisional authorization is the first step in a two-step regulatory process. It comes with conditions that must be met before full authorization is granted. By granting these VASP authorizations, Namibia joins Nigeria and South Africa, which have also authorized some VASPs to operate.
As Bitcoin.com News reported in July 2023, Namibia moved closer to recognizing cryptocurrencies when lawmakers passed a bill legalizing their use. At the time, the country’s finance minister claimed the bill’s passage would help regulators safeguard consumer interests. The legal framework established by the bill would also enable authorities to combat money laundering associated with cryptocurrencies.
Before the bill’s passage, Namibian officials, like many of their counterparts on the African continent, repeatedly warned residents against using cryptocurrencies. In the last quarter of 2022, the central bank began taking steps toward recognizing cryptocurrencies, but it still warned of the risks involved in trading or using them.
However, more than two years after warning Namibians against trading cryptocurrencies, the central bank said it will grant full authorization to entities that satisfy its requirements. Still, the central bank clarified that provisional authorization does not give applicants the go-ahead to begin operations.
“It is important to note that during the six-month provisional authorization period, the entities are not allowed to conduct any business or engage with individuals or entities in Namibia. This restriction ensures that all regulatory compliance requirements are fully met before operations begin,” the central bank stated.
The bank added that it remains committed to fostering a secure and regulated financial environment in the country. It added that it will continue to provide updates on the progress of these entities.
