Transactions of crypto-currencies are prohibited in Namibia

Transactions of crypto-currencies are not permitted in Namibia based on an old law for a decade. Thus, the merchants of the country may not accept bitcoins, litecoins or other altcoins as payment for goods and services, has indicated the country’s Central Bank.

The Central Bank of namibia says it wants to avoid money laundering

In a new document of nine pages, the Bank of Namibia has said that bitcoin and its variations have only a “minimal impact” in the development of the monetary policy of the Central Bank. She has also made remarks about the risks of laundering money with crypto-currencies. The paper cites much of the previous research conducted by the International Monetary Fund (IMF) and the Financial Action Task Force, a global body intergovernmental anti-money laundering. The document continues : “In addition to the fact that the bank does not recognise virtual currencies as legal currency in Namibia, it does not recognize it as a foreign currency that may be exchanged for the local currency. This is explained by the fact that virtual currencies are not issued or guaranteed by a central bank or backed by any commodity. “

A law that will not change anytime soon

Although the report acknowledges that crypto-currencies can be used to facilitate fund transfers and other payments to consumers, in exchange as the fiduciary currency. However, as the report explains, in the absence of fundamental legal principles ; the Central Bank of namibia is not able to approve this type of activity is in Namibia for the time being. For example, a local store is not authorized to pay or to accept virtual currency in exchange for goods and services. The users of crypto-currencies should therefore exercise caution when handling this kind of currency.