Namibia Crypto Banking Restrictions: What You Need to Know in 2025

Key Takeaways

• The Bank of Namibia (BON) still says crypto isn’t legal tender, but the Virtual Assets Act of 2023 forces crypto firms to register.
• Three companies received six‑month provisional licences in 2025; they cannot serve Namibian customers until full approval.
• All Virtual Asset Service Providers (VASPs) must follow the Travel Rule for transfers above NAD20,000 and meet strict AML/CTF standards.
• Individuals using crypto can face account restrictions at major banks, despite the regulatory sandbox for firms.
• The sector sits in a paradox: licences exist, yet public crypto trading remains technically illegal.

When it comes to Namibia banking restrictions on cryptocurrency transactions are a set of rules that aim to control digital‑asset activity while the country still treats crypto as non‑legal tender. The landscape has swung from a hard‑line ban in 2018 to a tightly‑controlled licensing regime in 2023‑2025. Below is a step‑by‑step walk‑through of how the policy evolved, what it means for businesses, and how everyday users are affected.

Early Opposition (2018‑2021)

In May2018 the Bank of Namibia (BON) issued a stark warning: crypto assets are not recognised as legal tender, and anyone trading them has "no recourse to the Bank in the event of financial loss." The statement also said BON opposed using crypto for payments and would not support any domestic or international crypto exchanges. This stance effectively shut down any formal banking relationship with crypto traders.

First Softening (2022)

Two years later BON announced that merchants could accept Bitcoin at their discretion. The change did not alter the legal‑tender status, but it opened a gray area where crypto payments were tolerated if a shop chose to accept them. The move hinted at a willingness to experiment without committing to full recognition.

Virtual Assets Act of 2023 - The Game Changer

June2023 saw the National Assembly pass the Virtual Assets Act of 2023 (ActNo.10of2023). The law does three things:

1. Requires every Virtual Asset Service Provider (VASP) to register with the Namibia Financial Institutions Supervisory Authority (NAMFISA).
2. Imposes AML and counter‑terrorist financing (CTF) obligations, including the Travel Rule for transactions over NAD20,000.
3. Bans foreign crypto‑exchange platforms from operating in Namibia.

At the same time, the Payment System Management Act of 2023 was enacted to align traditional payment services with the new virtual‑asset framework.

Provisional Licensing in 2025

In January2025 BON rolled out a two‑step provisional licensing model. Three firms earned a six‑month provisional authorisation:

• Landifa Bitcoin TradeCC
• United PayPoint (Pty) Ltd
• Mindex Virtual Asset Exchange

During the provisional period the companies cannot engage Namibian customers or conduct any business on‑shore. The sandbox is meant for building compliance infrastructure, hiring staff, and proving AML/CTF readiness.

Two firms asked for deadline extensions:

• Landifa Bitcoin TradeCC - extended to 31July2025
• United PayPoint - extended to 13May2025
• Mindex Virtual Asset Exchange - extended to 21November2025

Bon spokesperson Kazembire Zemburuka explained that extensions are granted only after a thorough due‑diligence review.

Compliance Checklist for VASPs

To move from provisional to full licence, a VASP must satisfy the following:

• Fully documented AML/CTF policies that meet NAMFISA standards.
• Real‑time transaction monitoring and risk‑scoring engines.
• Travel Rule compliance: capture sender/receiver name, ID number, address, and account details for any transfer > NAD20,000.
• Secure data storage for at least five years, with encrypted backups.
• Proof of financial capacity - minimum capital of NAD5million (≈USD300k).
• Qualified compliance officer with a recognised certification.

Failure to meet any condition can lead to a revoked provisional licence and possible fines.

Impact on Individual Users

While firms juggle licensing, everyday crypto enthusiasts face a different reality. Legal practitioners have reported that banks such as NedBank and Standard Bank have placed restrictions on account holders involved in crypto clubs. The restrictions range from temporary freezes to full closures, even though the users have not broken any specific banking rule - the banks simply act on BON’s broader guidance.

Critics argue BON lacks legislative authority to penalise private citizens directly and should seek court orders instead of unilateral banking actions. The uncertainty has forced many users to move funds to offshore wallets or peer‑to‑peer platforms that fall outside the formal banking system.

Paradox: Licences vs Illegal Trading

Even after the Virtual Assets Act, BON still states that crypto trading is not legal tender and remains “technically illegal.” Yet the same authority grants licences to VASPs. This creates a contradictory environment where a business can be registered to offer services that the law technically bans for the general public.

The paradox fuels both optimism and caution. On one side, regulated firms can eventually bring transparent services to market. On the other, investors remain wary because the legal status of their personal trades is unresolved.

Comparison of Provisional License Holders (2025)

What Businesses Should Do Now

If you plan to launch a crypto service in Namibia, follow this quick checklist:

1. Apply for a provisional licence with NAMFISA; include detailed AML/CTF policies.
2. Set up a compliance team that can produce the Travel Rule data on demand.
3. Invest in a secure, auditable transaction monitoring platform.
4. Prepare for on‑site inspections - BON may send auditors at any time during the six‑month window.
5. Maintain open communication with local banks to avoid account freezes for your staff.

Meeting these steps boosts the chance of a full licence before the provisional period ends.

What Users Can Do to Protect Themselves

For individuals, the safest path is to keep crypto activity separate from primary banking accounts. Use reputable international wallets that comply with KYC, and retain full transaction records in case a bank asks for proof of source of funds. If you belong to an investment club, consider forming a legal entity (e.g., a private company) to hold assets - this can make it easier to demonstrate compliance if questioned.

Stay updated on BON’s public statements; a sudden policy shift can happen, as seen when the Travel Rule threshold was set at NAD20,000 in late2023.

Looking Ahead - Will Namibia Become a Regional Crypto Hub?

The success of the provisional licences will likely decide Namibia’s fate. If the sandbox proves that strict AML/CTF can coexist with vibrant crypto services, regional players may view Namibia as a low‑risk entry point. Conversely, prolonged delays or harsher enforcement could push innovators to neighbouring countries with clearer rules.

For now, the market remains in limbo: licences exist, but public trading stays illegal, and banks keep watching crypto users closely. Keeping your expectations realistic and your compliance paperwork airtight is the best way to navigate this uncertain terrain.