Crypto Regulation in Namibia
In Namibia, the Bank of Namibia (BoN) has made its position on cryptocurrency very clear: it does not recognise, support and recommend the possession, utilisation and trading of cryptocurrencies in Namibia and by members of the public. Members of the public who do so will have no recourse in the event of financial loss or misfortune.
Source: NamibianAlthough cryptocurrencies do not have the status of legal cash in Namibia, the country’s central bank, the Bank of Namibia (BON), has announced that it has now included “virtual assets (VA) and virtual assets service providers (VASP) under its Fintech Innovations Regulatory Framework in a phased approach, through its innovation hub.”
Although cryptocurrencies do not have the status of legal cash in Namibia, the country’s central bank, the Bank of Namibia (BON), has announced that it has now included “virtual assets (VA) and virtual assets service providers (VASP) under its Fintech Innovations Regulatory Framework in a phased approach, through its innovation hub.”
Source: Finbold
From a regulatory standpoint, cryptocurrency is illegal.[1] As of November 2018, Bank of Namibia has not released a statement on the use or regulation of cryptocurrencies in its country.[2] The government does not consider virtual currency as a legal tender, and prohibits the purchase of goods and services via virtual currencies.[3] Establishment of exchanges is forbidden by the Currency and Exchanges Act, No.9 of 1993 and the Exchange Control Regulations 1961.
Source: Freeman Law
“In addition to the bank not recognizing virtual currencies as legal tender in Namibia, it also does not recognize it to be a foreign currency that can be exchanged for local currency. This is because virtual currencies are neither issued nor guaranteed by a central bank nor backed by any commodity.”
Source: Coin Desk
The Bank of Namibia (BON) has said that while cryptocurrencies have no legal tender status in the country, it has now brought “virtual assets (VA) and virtual assets service providers (VASP) under its Fintech Innovations Regulatory Framework in a phased approach, through its innovation hub.” The central bank added it is also considering amending “applicable laws and regulations diligently in consultation with other relevant authorities.”
In a recently issued statement, the BON also clarified that even though privately issued digital currencies are still not legally recognized, merchants and traders can accept payment in this form provided they are “willing to participate in such an exchange or trade.”
Source: Bitcoin
Since Namibia does not have capital gains tax (CGT), investors would not be taxed on holding cryptocurrencies but traders would be taxed on the income derived from trading cryptocurrencies. “In essence no currency is taxable, however gains in some form or the other would be taxable through CGT, if it were implemented. The hurdle will lie in the FIA process, and as previously mentioned tax legislation already exists to include cryptocurrency trading if deemed of an income nature,” Goliath reiterated. While some tax experts have suggested that cryptocurrencies could be taxed along the lines of CGT, if implemented in Namibia, Goliath cautions that whether the country needs CGT comes down to a cost-benefit analysis. “CGT elsewhere in the world is usually lower than the normal income tax rate, and if considered in Namibia would be the same. The administration costs associated with the implementation of CGT collection are very likely to exceed the tax revenue collected, and as such would not make any economic sense.
Source: New Era Live
Cryptocurrency exchanges are not allowed in Namibia under a decades-old law, and merchants in the African country may not accept them as payment for goods and services, the nation’s central bank has said.
In a new nine-page position paper, the Bank of Namibia said bitcoin and its progeny pose only a “minimal” threat to the central bank’s monetary policymaking role.
It also made familiar points about the risks of money laundering from cryptocurrencies, the alleged shortcomings of a currency without government or commodity backing, and the potential benefits the financial system could achieve through its underlying distributed ledger technology.
Source: Coin Desk
Not Available
Not Available
Not Available
Namibia is considering new regulation that will effectively open its economy up to new competition within the Fintech and financial services markets.
The Bank of Namibia is contemplating an “allow and see” approach, a “test and learn” framework and a “regulatory sandbox”.
With this regulation in place, Namibia wants to include more financial technology platforms into its national payments system.
Countries like South Africa often use the regulatory sandbox approach, while in Zimbabwe the central bank is at advanced stage of shortlisting Fintech companies picked under a regulatory sandbox.
Namibia looks to adopt a mix of approaches to ensure that no innovator is left out of its bid to expand Fintech. There are currently four commercial banks offering merchant accounts, six firms operating payment gateways and four payment processors – including Visa and China Union Pay.
Source: It Web
