Provisional licenses will be valid for six months. They will allow platforms to properly organize their activities, hire staff and create the necessary infrastructure. However, exchanges will not be able to provide services to the public until they receive final approval from the central bank. The regulator will give permission only if the companies meet all established requirements.
The representative of the Central Bank of Namibia, Kazembire Zemburuka, explained that if crypto exchanges ensure compliance with regulatory requirements before the expiration of the six-month period, the central bank can check their activities and, if there are no violations, issue permission before the deadline so that the services can begin working with local traders.
Provisional licenses have been issued to exchanges in accordance with the Namibian Virtual Assets Act. It was approved by the country’s National Assembly and signed by former President Hage Geingob in July 2023. For virtual asset service providers that fail to comply with regulatory requirements, the law provides for a fine of up to 10 million Namibian dollars (about $527,983) and up to 10 years in prison.
In 2022, the first crypto ATM, called Crypto Kiosk, was installed in the Namibian capital of Windhoek, giving local residents the opportunity to convert Bitcoin and Ether into Namibian dollars.
Source: Bits
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