Is crypto legal in Namibia? Rules & regulation (2026)

Legal framework

Virtual Assets Act 10 of 2023; Bank of Namibia designated as primary regulator under Section 5; NAMFISA as licensing/supervisory authority

Status by sub-area

• Stablecoins

  Partial

  Stablecoins are captured within the broad definition of 'virtual assets' under the Act and VASPs dealing in them require a licence. However, 'digital representations of fiat currencies' (including CBDCs) are explicitly excluded, and no bespoke stablecoin-specific reserve, redemption or attestation rules have been issued.

  Still pending: Bespoke stablecoin regulations (reserves, redemption, attestation rules) not yet issued

• Exchanges / VASP

  Partial

  The Act mandates licensing for all exchanges and VASPs; only provisional authorisations (not full operational licences) have been issued as of mid-2025. Applicants must be locally incorporated, maintain a local office, satisfy AML/CFT obligations and comply with the Travel Rule.

  Still pending: Full operational licenses still pending; only provisional authorisations issued as of mid-2025

• Token Offerings

  In force

  The Act explicitly regulates Initial Token Offerings (ITOs), creating a 'Token Issuer' licence class. ITOs must comply with disclosure requirements, and purchasers are granted statutory rescission and withdrawal rights. The Act covers participation in and provision of financial services related to token issuers' offers and sales.

• Custody

  In force

  The Act establishes a Class 'R' Virtual Asset Custodian licence requiring segregation of client assets, disclosure obligations to the regulatory authority, and adherence to security and operational standards. The framework is on the books but no custodian has yet obtained a full operational licence.

• DeFi

  None

  The Virtual Assets Act does not specifically address decentralised finance protocols, DAOs, or automated market makers. No enforcement action or regulatory guidance targeting DeFi has been issued. DeFi activity falls into a regulatory gap; its treatment under the VASP licensing framework (e.g. whether front-end operators qualify as VASPs) is unclear.

  Still pending: DeFi regulatory framework and VASP applicability clarification not addressed by Act

• Tax

  Partial

  The Virtual Assets Act introduces taxability for crypto transactions and NFTs, and crypto gains are subject to tax under Namibia's Income Tax Act (Namibia has no standalone capital gains tax, so gains are likely treated as ordinary income). The Namibia Inland Revenue Authority has not yet published dedicated crypto tax guidance on staking, airdrops, mining income or specific reporting obligations.

  Still pending: NIRA crypto tax guidance on staking, airdrops, mining, and reporting obligations pending

Key points: crypto & digital assets in Namibia

1. 01Virtual Assets Act in force (July 2023)

   Act No. 10 of 2023 was signed into law on 25 July 2023, creating Namibia's first bespoke legal framework for virtual assets and Virtual Asset Service Providers (VASPs), covering exchanges, custody, token offerings, wallet services and advisory activities.

   coindesk.com financemagnates.com

2. 02Bank of Namibia as regulator; provisional licences issued January 2025

   On 13 January 2025, the Bank of Namibia granted provisional authorisations to Mindex Virtual Asset Exchange (Pty) Ltd and Landifa Bitcoin Trade CC, valid for six months with conditions; the firms cannot serve the public until full operational licences are granted. Extensions into late 2025 were requested by some applicants.

   bon.com.na economist.com.na

3. 03Crypto not legal tender

   The Bank of Namibia has consistently stated that cryptocurrencies have no legal tender status in Namibia and are not recognised as a payment system, notwithstanding the regulatory framework created by the Act.

   namibian.com.na

4. 04AML/CFT Travel Rule aligned with FATF

   The Act imposes FATF-aligned AML/CFT obligations on VASPs, including the Travel Rule for transactions exceeding NAD 20,000 (~USD 1,000), requiring collection and transmission of originator and beneficiary information. Non-compliance attracts fines up to NAD 10 million and up to 10 years' imprisonment.

   bowmanslaw.com mariblock.com

5. 05CBDC feasibility study underway

   An IMF technical assistance mission in early 2024 helped the Bank of Namibia establish a feasibility study and roadmap for a retail central bank digital currency (rCBDC); CBDCs are explicitly excluded from the definition of 'virtual assets' under the Act.

   imf.org

6. 06Tax framework still evolving

   The Virtual Assets Act introduces taxability of crypto transactions, but Namibia has no standalone capital gains tax; gains are likely treated as ordinary income under the Income Tax Act. The Namibia Inland Revenue has not yet issued dedicated crypto tax guidance, leaving reporting obligations unclear in practice.

   nairametrics.com eaglefm.com.na

Sources

1. 1.bon.com.na/Informations/Media/Media-Releases/2024-Media-Releases/Articles/13-01-
2. 2.imf.org/en/Publications/high-level-summary-technical-assistance-reports/Issue
3. 3.bowmanslaw.com/insights/the-virtual-assets-act-10-of-2023-what-should-you-know/
4. 4.namibian.com.na/cryptocurrencies-not-legal-tender-bank-of-namibia-insists/
5. 5.economist.com.na/94418/markets/central-bank-grants-provisional-licenses-for-payment-an
6. 6.coindesk.com/policy/2023/07/25/namibias-crypto-assets-bill-is-now-a-law
7. 7.financemagnates.com/cryptocurrency/namibia-repeals-crypto-ban-with-new-regulations-for-ex
8. 8.mariblock.com/namibia-shores-up-crypto-regulations-grants-provisional-licenses-to-t
9. 9.nairametrics.com/2023/07/13/namibia-imposes-tax-on-cryptos-and-nfts/
10. 10.eaglefm.com.na/news/namibia/crypto-assets-pseudonymity-a-tax-headache/