Bank of Namibia Crypto Policy: What You Need to Know About Restrictions and Licensing in 2025

When you hear that a country bans cryptocurrency, you might assume it’s a total blackout - no trading, no wallets, no payments. But in Namibia, the story is more complicated. The Bank of Namibia doesn’t outright ban crypto. Instead, it’s built a system that lets you use it - if you follow very strict rules. And those rules are changing fast.

It’s Not Illegal to Use Crypto - But It’s Not Legal Either

In 2018, the Bank of Namibia made it clear: cryptocurrencies aren’t money. They’re not commodities. They’re not recognized on any financial exchange in the country. That sounded like a full stop. But by 2022, the tone shifted. The central bank said Bitcoin could be used to pay for goods - if both buyer and seller agreed. No laws were broken. No fines were issued. It was a quiet green light, tucked inside a red warning.

The truth? Crypto isn’t legal tender in Namibia. That means no one has to accept it. No business is forced to take it. But if you walk into a shop and they say, “Yeah, we’ll take your Bitcoin,” that’s allowed. The Bank doesn’t stop you. It just won’t protect you if things go wrong.

The Virtual Assets Act of 2023: The Real Game Changer

Everything changed in June 2023, when Namibia’s National Assembly passed the Virtual Assets Act (Act No. 10 of 2023). This wasn’t a suggestion. It was law. And it created something new: a licensing system for crypto businesses.

Now, if you want to run a crypto exchange, operate a crypto ATM, or offer wallet services in Namibia, you must register with the Namibia Financial Institutions Supervisory Authority (NAMFISA). You can’t just set up a website and start taking money. You need approval. And that approval comes with heavy strings attached.

The process has two stages. First, you get provisional authorization. That’s not a license. It’s a probation period - six months long. During that time, you’re not allowed to serve any customers in Namibia. You can’t even advertise. You’re locked in a regulatory sandbox. Your job? Hire staff, buy software, install security systems, and prove you can follow the rules.

Only after six months - and only if the Bank of Namibia is satisfied - do you get full licensing. And even then, you’re still not allowed to call your service “legal.” You’re just allowed to operate under supervision.

What You Can’t Do - Even With a License

The restrictions don’t stop at licensing. Here’s what’s flat-out banned:

• No foreign crypto exchanges - Only companies based in Namibia can apply for a license. If you’re a Binance or Coinbase user, you’re not covered. You’re on your own.
• No ICOs - The Bank of Namibia says initial coin offerings are “open to fraud, manipulation, and misrepresentation.” They won’t allow them. Period.
• No anonymous transactions - If you send more than NAD 20,000 (about $1,000 USD), you must give your full name, ID number, and bank details. The same goes for the person receiving it. This is called the “Travel Rule,” and it’s the same standard used in the EU and U.S.
• No record destruction - Every transaction, every user, every withdrawal - you must keep logs for at least five years. No exceptions.

Who’s Already Licensed? And Why They’re Still Waiting

On January 13, 2025, the Bank of Namibia granted provisional authorization to four companies:

• Finatic Technologies (Pty) Ltd. - Payment services
• United PayPoint (Pty) Ltd. - Payment services
• Mindex Virtual Asset Exchange (Pty) Ltd. - Crypto exchange
• Landifa Bitcoin Trade CC - Crypto exchange

But here’s the twist: by mid-2025, three of the four had asked for extensions. Landifa Bitcoin Trade CC got a reprieve until July 31, 2025. United PayPoint got until May 13, 2025. Mindex got until November 21, 2025.

Why? Because meeting the requirements is harder than it looks. Setting up secure systems, hiring trained staff, installing audit trails - it’s expensive and slow. And the Bank won’t cut corners. As their spokesperson said: “If they’re ready before the six months, we can inspect. But we won’t rush.”

How Namibia Compares to Other African Countries

Africa is split on crypto. Nigeria banned banks from handling crypto in 2021. Botswana outright prohibits trading. Kenya lets it run wild - no rules, no oversight.

Namibia sits in the middle. It’s not as open as South Africa, which started licensing VASPs in 2022. But it’s way ahead of Tanzania, which still has a total ban.

The unique part? Namibia’s six-month sandbox. No other African country makes you wait that long before you can even talk to customers. It’s designed to keep the public safe - but it also kills momentum for startups. A company in Mauritius can launch and serve clients the same day. A Namibian firm can’t even open its doors for half a year.

The Big Paradox: Crypto Payments Allowed, Blockchain Technology Blocked

Here’s the contradiction no one talks about. The Bank of Namibia says merchants can accept crypto. But the U.S. Department of State’s 2025 Investment Climate Report says Namibia is “reluctant to allow the implementation of blockchain technologies.”

What does that mean? It means you can pay for a laptop with Bitcoin. But if you want to build a blockchain-based land registry, a smart contract system for farming, or a decentralized supply chain - you’ll hit a wall. The Bank doesn’t oppose crypto payments. It opposes the tech that makes them possible.

That’s why some experts call it a “half-step” policy. It lets people use the product but blocks the innovation behind it. It’s like allowing people to drive cars - but banning the internal combustion engine.

What’s Next? The CBDC Shadow

While the Bank regulates private crypto, it’s also quietly building its own digital currency. The Retail Central Bank Digital Currency (rCBDC) is in early testing. Why? Three reasons: financial inclusion, faster payments, and reducing reliance on cash.

This is critical. Namibia isn’t trying to kill crypto. It’s trying to replace it - with something it controls. The rCBDC would be backed by the state, traceable, and secure. No volatility. No fraud. No foreign exchanges.

If the rCBDC launches, it could make licensed crypto services look outdated. Why use Bitcoin if you’ve got a digital Namibian dollar that works just as fast - and is protected by law?

What This Means for You

If you’re a Namibian citizen:

• You can still buy and hold crypto. No law stops you.
• You can pay for goods if the merchant agrees. But don’t expect refunds or protections.
• If you run a business - don’t try to skip the licensing process. The penalties are severe.
• If you’re a developer - focus on solutions that don’t rely on public blockchain networks. The government isn’t interested in decentralization.

If you’re a foreign investor:

• Don’t assume Namibia is a crypto-friendly hub. The sandbox is long, the rules are tight, and foreign firms are locked out.
• Look at partnerships with licensed local entities - but expect slow progress.
• Watch the rCBDC. It’s the real future of digital money in Namibia.

Final Reality Check

The Bank of Namibia didn’t ban crypto. It didn’t embrace it either. It built a cage - with a door. You can walk in, but only if you pass every test. And once you’re inside, you’re under watch.

This isn’t about stopping crypto. It’s about controlling it. The message is clear: if you want to play in Namibia’s digital money space, you do it on our terms. Not yours.