WINDHOEK, Aug. 8 — Namibia has enacted the country’s first legislation to regulate Virtual Asset Service Providers (VASPs) and Initial Token-Offering Service Providers (ITOSPs), the country’s central bank said Monday.
Namibia has taken bold legislative steps to regulate this sector and fully protect the public against potential risks, the Bank of Namibia (BoN) said in a statement. The Virtual Assets Act 2023 was passed in late July and will be administered by the BoN.
“The monetary system consists of money and payment systems. The ability of the monetary system to function effectively depends on the public’s confidence in the system. New technologies, products, and related services have the potential to spur financial innovation and efficiency and improve financial inclusion, but they also create opportunities for criminals to launder their proceeds or finance their illegal activities,” said BoN Governor Johannes Gawaxab.
He said it is important to regulate virtual assets and virtual asset activities, describing the new law as a major step to provide greater legal and regulatory certainty to both the public and the financial services industry.
Meanwhile, to ensure a comprehensive and easily implementable regime, the BoN is also in the process of finalizing rules, which contain operational requirements for the VASPs and ITOSPs, he said, adding that the rules include but are not limited to cyber security, travel rules, capital, cyber and risk requirements. (Xinhua)