Namibia has officially signed a law to regulate Virtual Asset Service Providers (VASPs) operating in the country, reversing its previous decision to ban cryptocurrency exchanges made in 2017. The law, called the Namibia Virtual Assets Act 2023, was approved in the National Assembly on July 6 and signed by President Hage Geingob on July 14. It aims to assign a regulatory authority to oversee crypto exchanges in Namibia, making it the country's first law focused on regulating cryptocurrency-related activities.

The law's main objectives are to ensure consumer protection, prevent market abuse, and mitigate the risks of money laundering and terrorism financing. Non-compliant providers could face penalties of up to 10 million Namibian dollars ($671,000) and up to 10 years in prison. However, the country's central bank, the Bank of Namibia, maintains that cryptocurrencies will not be considered legal tender in Namibia.

This legal U-turn began in May 2018 when the Bank of Namibia revised its original decision to ban cryptocurrency exchanges. The new law is expected to come into force at a date determined by the Ministry of Finance.

Several other African nations have also passed cryptocurrency laws, with countries like Botswana, Kenya, Mauritius, and Seychelles implementing regulations. On the other hand, some countries like Cameroon, Ethiopia, Lesotho, Liberia, the Republic of the Congo, Sierra Leone, Tanzania, and Zimbabwe have enforced bans on cryptocurrencies, according to the International Monetary Fund.

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