The Namibian Government has officially signed a law to regulate Virtual Asset Service Providers operating in the country.
On July 21, the VASP regulatory act was added to the Gazette of the Republic of Namibia after it was previously approved by the Namibian National Assembly on July 6 and signed by President Hage Geingob on July 14. The Namibia Virtual Assets Act aims to appoint a regulatory authority to oversee crypto exchanges in the country. It is also the first law to lay down how the country should regulate cryptocurrency-related activities.
The primary goal is to protect consumers and prevent money laundering.
The new law will enter into force on a date set by the Ministry of Finance of Namibia. Among the most important purposes of the law are to ensure consumer protection, to prevent possible abuse in the market and to oppose money laundering efforts.
Non-compliant providers can reportedly face fines of up to $671,000 ($10 million Namibian) and 10 years in prison. The country’s central bank, the Bank of Namibia, maintains its stance that cryptocurrencies will not have legal tender status in the country.
