The Central Bank of Namibian has granted the first set of provisional licenses to two cryptocurrency exchanges.

According to what local media reported, citing recent media statement From the regulator, the Bank of Namibia has granted temporary authorization to Mindex Virtual Asset Exchange (Pty) Ltd. and Landifa Bitcoin Trade CC to act as virtual asset service providers.

However, they will not be able to provide services to the public until they receive final approval from the central bank. the Temporary licensesValid for six months, it allows companies to establish operations, hire employees, and create the required infrastructure.

Final approval will only be granted if companies meet all requirements imposed by the Central Bank.

Kazimber Zimboruka, bank spokesman He explained If companies complete their preparation and are ready before the end of the six-month period, the central bank can examine their operations and grant approval early, allowing them to engage with the public ahead of the general timeline.

Initial licenses were granted under Virtual Assets Lawwhich was approved by the country's National Assembly and subsequently signed by former President Hage Geingob in July of 2023.

Under Namibia's Virtual Assets Act 2023, non-compliant service providers face severe penalties, including fines of up to N$10 million (about US$527,983) and imprisonment of up to 10 years.

The Bank of Namibia, as the designated regulatory authority under the Act, maintains supervision over virtual asset service providers to ensure their compliance with measures aimed at preventing money laundering, terrorist financing and other financial crimes.

Last year, it was Namibia Included On the Financial Action Task Force's gray list, which identifies countries with strategic deficiencies in their AML/CFT systems. In an October 2024 update, the intergovernmental policy-making body suggested that the country continue to strengthen its countermeasures.

Many other African countries have passed laws to regulate the digital currency sector. And most recently, on January 10, Kenny I opened Public consultation on a draft law to regulate virtual assets. Other countries such as Botswana, Mauritiusand Seychelles They also made similar moves.