Namibia has taken a major step towards regulating the virtual asset industry, with the Namibia Virtual Assets Act 2023 officially becoming law on Friday. The bill, which was passed by the National Assembly last month, is the country’s first to set out how crypto should be treated. According to Diana Vivo, an associate at the law firm Ellis Shilengudwa Incorporated, the Act will only become effective on a date to be determined by the Minister of Finance of Namibia.
The Act aims to designate a regulatory authority to regulate and supervise virtual asset service providers and related activities, as well as ensure consumer protection, prevent market abuse and money laundering. This follows similar moves by other nations around the world, such as the European Union, UK and South Korea, to increase regulation of crypto-related activities. South Africa recently opened up a crypto licensing regime.
Once the Act is in effect, the designated crypto regulator will have the power to license virtual asset service providers and make new laws.