In Namibia, crypto restrictions create a confusing landscape where businesses can get provisional licenses but individuals still can't legally trade cryptocurrency. This article explains what's really happening with banking rules, licensing, and why this situation matters to you in 2026.
How Namibia's Crypto Stance Evolved
The Bank of Namibia (BON) is the central bank responsible for monetary policy and financial regulation. It initially took a strict stance against crypto in 2018 but has since shifted toward regulated acceptance. first made its position clear in May 2018 with an official statement declaring cryptocurrency isn't legal tender and the bank won't protect users from losses. They specifically said they "opposed using cryptocurrencies as a payment method" and "do not currently recognise cryptocurrencies as a commodity." This meant if you lost money trading Bitcoin, you had no legal recourse.
Things started shifting in 2022 when BON allowed merchants to accept Bitcoin as payment, though it still wasn't official legal tender. The real change came in June 2023 when Namibia passed the Virtual Assets Act of 2023 is Namibia's comprehensive law regulating digital assets. It requires all Virtual Asset Service Providers (VASPs) to register with NAMFISA and comply with strict anti-money laundering rules. (Act No. 10 of 2023). This law created a framework for regulating digital assets, but it didn't make cryptocurrency legal for general public use.
Current Business Licensing Rules
Under the Virtual Assets Act, all Virtual Asset Service Providers (VASPs) are businesses that handle cryptocurrency transactions. They must obtain licenses from NAMFISA and follow strict compliance procedures. must register with the Namibia Financial Institutions Supervisory Authority (NAMFISA) is the regulatory body overseeing financial institutions and virtual asset service providers in Namibia. It handles licensing and compliance monitoring for crypto businesses. (NAMFISA). In January 2025, BON granted provisional licenses to three companies: Landifa Bitcoin Trade CC, United PayPoint (Pty) Ltd, and Mindex Virtual Asset Exchange. These companies can't operate in Namibia yet-they're in a six-month testing period to prove they meet all compliance requirements.
| Company | Provisional Start | Extension Date | Status |
|---|---|---|---|
| Landifa Bitcoin Trade CC | January 2025 | July 31, 2025 | Requesting extension |
| United PayPoint (Pty) Ltd | January 2025 | May 13, 2025 | Requesting extension |
| Mindex Virtual Asset Exchange | January 2025 | November 21, 2025 | Under review |
Two of these companies asked for extensions. Landifa wants until July 31, 2025, and United PayPoint until May 13, 2025. Mindex got an extension until November 21, 2025. BON spokesperson Kazembire Zemburuka explained: "The bank is currently conducting due diligence to assess compliance with the conditions attached to the provisional authorisations." These companies must prove they have proper infrastructure, staff, and security systems before getting full approval.
Individual User Restrictions
While businesses work on getting licenses, regular people face serious problems. Legal experts report cases where individuals using cryptocurrency were blocked from their bank accounts. Major banks like NedBank is a major South African bank operating in Namibia that has restricted accounts linked to cryptocurrency activities. and Standard Bank is a major South African bank operating in Namibia that has restricted accounts linked to cryptocurrency activities. in Namibia froze accounts of people involved in crypto investment clubs. This happens even though the Virtual Assets Act doesn't give BON direct power to restrict individual accounts. Lawyers argue BON is overstepping by enforcing rules without clear legal backing.
Travel Rule Details
Namibia follows international standards with its Travel Rule requires VASPs to collect and share sender/receiver details for transactions over NAD 20,000 (about USD 1,000).. For any cryptocurrency transaction over NAD 20,000 (roughly USD 1,000), VASPs must collect and share personal information like names, ID numbers, and account details. This helps track suspicious activity and prevent money laundering. Banks and crypto businesses must monitor transactions in real-time and report anything unusual to regulators.
The Crypto Trading Paradox
Here's the confusing part: Namibia has a law regulating crypto businesses but still says cryptocurrency trading is illegal. BON continues to state it "does not recognize cryptocurrencies, such as Bitcoin, as legal tender" and remains "reluctant to allow the implementation of blockchain." This creates a situation where licensed companies can operate under strict rules, but ordinary citizens can't legally buy or sell crypto. The Payment System Management Act 2023 works with the Virtual Assets Act to provide comprehensive oversight of traditional and digital payment services. (Act No. 14 of 2023) adds another layer of oversight, but it doesn't change the core problem-individuals still can't use crypto legally.
What's Next for Namibia's Crypto Scene
As of October 2025, Namibia's approach is cautious but progressive. The government is trying to balance innovation with security. They've added more licensed entities like Finatic Technologies (Pty) Ltd is a fintech company licensed for payment services under Namibia's new regulatory framework. for payment services, showing expansion beyond pure crypto. However, the timeline for full market opening remains unclear. Many businesses and users are stuck waiting for BON to finalize licensing decisions. If the current provisional licenses succeed, Namibia could become a regional hub for regulated crypto activity. If not, it might stay stuck in this restrictive middle ground.
Is cryptocurrency legal in Namibia?
No, cryptocurrency trading remains technically illegal in Namibia as of 2026. The Bank of Namibia continues to state it "does not recognize cryptocurrencies as legal tender" and "does not support trading on financial markets." However, licensed Virtual Asset Service Providers (VASPs) can operate under strict supervision, creating a gray area where businesses have permission but individuals don't.
Can I use Bitcoin to pay for goods in Namibia?
Merchants can accept Bitcoin at their discretion since 2022, but it's not legal tender. This means businesses can choose to take it as payment, but they aren't required to, and you can't use it for government services or taxes. The Bank of Namibia still doesn't recognize it as official currency.
Why did my bank account get restricted for crypto activity?
Banks like NedBank and Standard Bank in Namibia have restricted accounts linked to cryptocurrency. This happens despite the Virtual Assets Act not giving BON direct authority to block individual accounts. Legal experts say this enforcement is questionable since the central bank lacks law-making power and should go through courts for direction.
What's the Travel Rule for crypto in Namibia?
For transactions over NAD 20,000 (about USD 1,000), Virtual Asset Service Providers must collect and share sender and receiver details, including names, ID numbers, and account information. This helps track suspicious activity and prevent money laundering, aligning with international standards.
When will Namibia fully legalize cryptocurrency?
There's no clear timeline. BON and NAMFISA are moving slowly, focusing on licensing businesses first. The central bank's reluctance to recognize crypto as legal tender suggests full legalization isn't coming soon. Experts say Namibia's cautious approach means individual crypto trading will likely remain restricted for years unless regulatory changes happen.