Opinion: Namibia Passes New Laws to Lay Groundwork for Its Crypto Regulatory Strategy

Odaily Planet Daily News Namibia’s new encryption law stipulates licensing requirements for companies and requires the appointment of a regulator to oversee the industry. Local lawyers say that while the law lacks clarity on how regulators will treat cryptocurrencies, the framework will help lead to more comprehensive laws. Namibia has a new encryption law, and while it provides little clarity for service providers, it lays the groundwork for future legislation, according to local legal experts. Ronald Nanub, an economist at the Prime Minister’s Office of Namibia, said the bill was exciting and timely, but only the (policy) “framework” needed in the crypto space. The bill calls for regulators to oversee the industry, but no specific regulator has been selected. The new law also sets out requirements for consumer protection, prevention of market abuse and money laundering. But Nanub said the bill was only the first step in developing a comprehensive regulatory strategy. Namibia needs a “fit-for-purpose” cryptocurrency taxation framework, as the country does not tax digital assets, even capital gains, Nanub said. He added that another committee or compliance body could also be set up to make sure people follow the rules. (CoinDesk) According to previous reports, in July this year, the Namibian government has turned the Virtual Assets Act into law and plans to designate a regulatory agency to supervise the virtual asset industry. The Namibia Virtual Assets Act 2023 aims to help Namibia designate a regulator to regulate and supervise virtual asset service providers and their related activities. The Act also seeks to ensure consumer protection measures against issues such as market abuse and money laundering. It is the first bill in the country to regulate how cryptocurrencies should be handled and was passed by the National Assembly last month. The bill has been gazetted in the Government Gazette of the Republic of Namibia, meaning it is now law. However, Diana Vivo, a partner at law firm Ellis Shilengudwa Incorporated, said, "It has not yet come into force and will come into force on a date to be determined by Namibia's finance minister." The country's designated cryptocurrency regulator will soon have the power to issue licenses to virtual asset service providers and enact new laws.