. Firms must be incorporated in Namibia and have a registered office in the country in order to get a license. If a crypto firm operates in the country without a license, it could face up to 10 years of imprisonment or pay a penalty of 10,000,000 Namibian dollars .
The new law also sets requirements for consumer protection, preventing market abuse and money laundering. But the act is only the first step to setting up a comprehensive regulatory strategy, according to Nanub.Namibia needs a crypto tax framework that is “fit for purpose,” according to Nanub, because the country doesn’t tax digital assets,. Another commission or compliance body could also be created to ensure people follow rules, he added.
Under the new law, the chosen crypto regulator will have powers to license virtual asset service providers and make new rules. However, the bill “doesn't give obligations to the regulatory authority, the structure, the level of expertise that it needs to have, it's still very open,” Vivo said, explaining some areas that could be addressed in future legislative efforts.
Flexibility is good but “we do not want to see those powers being taken beyond proper limits,” Jamie Theron, senior associate of DLA Piper Africa Namibia said.