The Bank of Namibia (BON) has issued provisional licences to two prospective payment service providers and as many cryptocurrency exchanges.

In a release, the central bank said in terms of the country's payment system and virtual asset laws, it had licensed Mindex Virtual Asset Exchange and Landifa Bitcoin Trade CC to put in place systems to operate as cryptocurrency service providers in the southwest African nation.

In addition, it cleared Finatic Technologies and United PayPoint to begin preliminary work towards officially launching payment service operations.

The licences, BON said in the release on January 13, will be valid for six months within which their holders are expected to have met specific conditions.  Under a two-step licensing approach, the bank will assess the extent to which the provisional licencees would have put in place the necessary infrastructure.  If the requirements are met, the bank can consider awarding a full operational licence.

"It is important to note that during the six-month provisional authorisation period, the entities are not allowed to conduct any business or engage with individuals or entities in Namibia.  This restriction ensures that all regulatory compliance requirements are fully met before operations begin," said the central bank.

The government enacted the Virtual Assets Act in July 2023.  In terms of that law, Cryptonews wrote on January 15, non-compliant providers face severe penalties, including fines of up to $527,983 and imprisonment for up to 10 years. 

The law designates the BON as "the regulatory authority designated by the act, retains oversight over virtual asset service providers to ensure they comply with measures aimed at preventing money laundering, terrorism financing, and other financial crimes," the publication added.