The Namibian parliament recently passed a bill that aims to establish a regulatory regime for cryptocurrencies. According to the Namibian Finance Minister, safeguarding the interests of consumers and combating market abuse are some of the reasons why parliament has taken this step.

Mitigating Money Laundering Risks

The Namibian parliament is reported to have passed a bill aiming to legalize cryptocurrencies and establish a framework for regulating these types of assets. According to the country’s Finance Minister, Iipumbu Shiimi, the law is expected to help authorities safeguard the interests of consumers and to combat market abuse.

In his remarks published by The Namibian, Shiimi also suggested that the law will enable authorities to deal with money laundering risks associated with digital assets.

“The aim of the legislation was to create a regulatory framework to protect consumers, and the risk of money laundering is mitigated,” the Minister reportedly said.

The legislative body’s move to regulate digital assets seemingly contradicts the Bank of Namibia (BON)’s which declared in the second half of 2022 that cryptocurrencies had no legal tender status in the country. The Namibian central bank however said it would not stand in the way of merchants and traders who accepted crypto assets.

Meanwhile, the Namibian parliament’s passage of the bill has been lauded as a step in the right direction. However, some Namibian experts like Jesaya Hano-Oshike warned the enactment of the law should not result in unnecessary obstacles.

“The legislation should not stifle innovation in the space, but rather encourage and foster innovation when it is done in the scope of the legislation,” Hano-Oshike.

Financial analyst Arney Tjaronda welcomed the passage of the bill but said authorities must not ignore digital assets’ likely impact on the country’s financial system.

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