The Bank of Namibia has granted provisional authorization to Mindex Virtual Asset Exchange and Landifa Bitcoin Trade to operate as virtual asset service providers. This decision is part of a two-step licensing process following the passage of the Virtual Asset Act of 2023. However, these entities are prohibited from commencing operations until full authorization is obtained, ensuring compliance with regulatory standards.
On January 13, the Bank of Namibia announced its provisional authorization for two entities, Mindex Virtual Asset Exchange and Landifa Bitcoin Trade, enabling them to operate as virtual asset service providers (VASPs). This provisional status is the initial phase of a two-step licensing process under Namibia’s Virtual Asset Act of 2023.
This decision marks a significant shift in Namibia’s approach to cryptocurrency, following the passage of a bill in July 2023. The bill legalized the use of cryptocurrencies and was aimed at helping regulators protect consumer interests and tackle money laundering associated with digital currencies. Previously, Namibian officials had cautioned against the use of cryptocurrencies, citing potential risks.
In summary, while Namibia is beginning to embrace cryptocurrency through these provisional authorizations for VASPs, the central bank has emphasized the importance of regulatory compliance. The entities are currently barred from conducting business until they meet the necessary requirements. The step reflects a broader movement toward regulatory acknowledgment of cryptocurrencies across Africa.
Original Source: news.bitcoin.com
