Namibia has joined the ranks of other African governments in their support of cryptocurrencies and digital assets through the passage of a bill in the country’s National Assembly,
The measure to regulate digital assets, cryptocurrencies, and virtual asset service providers (VASPs) in Namibia was approved by the lower house of parliament on June 22. Its primary objective is to bring uniformity to the industry.
The purpose of the proposed legislation is to create a structure for the licencing and regulation of VASPs. In addition to this, it intends to appoint a regulatory entity that will be responsible for monitoring the activity of these service providers.
The primary goals consist of assuring consumer protection, stopping market abuse, and reducing the risks of money laundering, supporting terrorist organisations, and proliferation activities related to digital asset exchanges. The law also addresses tangential concerns that are connected to these overall goals.
RelatedPosts
Read also: Nigerian foreign investment in cryptocurrency decreases
Further reports on crypto in Namibia
Reports from the community’s various news outlets indicate that the bill is currently awaiting official publication before going into effect. It has been claimed that Iipumbu Shiimi, Namibia’s Minister of Finance and Public Enterprises, discussed the possibility of establishing a regulatory agency that would be responsible for supervising VASPs in the country and issuing licences to those businesses.
According to reports, non-compliant service providers risk fines of up to 10 million Namibian dollars ($671,572) and a potential prison sentence of up to ten years. Despite this, the Bank of Namibia continues to uphold its position that cryptocurrencies do not meet the requirements to be considered legal cash in the country.
In the report, Kazembire Zemburuka, director of strategic communications and international relations at the Bank of Namibia, stated the bank’s position. He indicated that once the risks associated with innovations such as virtual assets are better managed, the bank will evaluate and decide whether or not to accept them within the financial system.
In 2017, the financial institution made public its adamant opposition to customers using cryptocurrencies like Bitcoin and Ethereum as a means of payment for products and services. It was reported that the decades-old law of the African country prohibits the use of the country for the trading of virtual currencies.
About Cryptocurrency
A cryptocurrency is a form of digital currency that is designed to operate as a means of exchange through a computer network. It does not rely on any central authority, such as a government or bank, to uphold or maintain it. Other names for cryptocurrency include crypto, crypto-currency, and crypto.
Cryptocurrency can either be utilised as a replacement for traditional payment methods or it can be invested in. The word “cryptocurrency” comes from the cryptographic algorithms that make it possible for anyone to buy, sell, or exchange cryptocurrencies anonymously and securely without the need for a central authority such as a government or financial institutions.
Utility, payment, security, and stablecoins are the four primary categories of cryptocurrencies. In addition to this, there are asset-backed tokens, NFTs, and DeFi tokens. Tokens designed for use as utilities or as mediums of exchange are by far the most widespread type of cryptocurrency.
You can acquire Bitcoin through the use of a cryptocurrency exchange or through the services of selected broker-dealers. When making transactions using cryptocurrencies, you should pay close attention to the associated transaction costs because these fees might vary substantially between currencies. Because cryptocurrency investment has a high level of risk, it is essential to avoid putting in more money than you can comfortably afford to lose.
By taking part in the direct lending process, the platforms that make up decentralised finance (DeFi) allow you the ability to earn money in a manner analogous to that of a bank. Users link their cryptocurrency wallets to this platform and contribute money and tokens to a shared pool along with other users. After that, the funds in that pool are used to make loans to other people in exchange for interest and fees.