The Bank of Namibia grants provisional crypto licenses to Mindex and Landifa Bitcoin Trade, allowing them to establish operations before final approval.

The Bank of Namibia has granted provisional authorization to Mindex Virtual Asset Exchange (Pty) Ltd. and Landifa Bitcoin Trade CC. So these companies can start to plan out their operations, but they cannot yet provide services to the public. First, they have to go before the central bank for final approval.

Provisional licenses are valid for six months. They will be able to set up their businesses, hire staff and the infrastructure that is needed during this time. However, they are unable to deal with the public until all institutions imposed by the central bank are completed.

If the companies are ready before the six months are up, a spokesperson for the bank, Kazembire Zemburuka, explained, the central bank may inspect their operations. The companies may also begin operating earlier than usual if the bank is ready to grant final approval as soon as they meet all requirements.

Namibia Sets Conditions for Provisional Crypto Licenses in New Law

Namibia’s National Assembly approved the Virtual Assets Act, which gave the provisional licenses. The law was signed by former President Hage Geingob in July 2023. The process of licensing is a two-step process. The first is that the bank has been given a provisional license with conditions. These conditions have to be met, and then the companies can apply for full approval to start operations.

This is for six months, provisional authorization. Over this period, the companies still need to fulfil all pre authorization conditions to get a full license. The issue of the final license could be expedited if they satisfy this condition early. However, the companies may not conduct any business during this provisional period. Until they meet all regulatory requirements they can’t engage with people or other companies in Namibia.

In keeping with this, the Bank of Namibia is committed to a safe and regulated financial environment in the country. The bank will keep updating about the progress of these companies.

Other African countries are also trying to regulate crypto sectors. Laws have been introduced or public consultations for new laws to regulate virtual assets have started in many countries.