The Bank of Namibia has reiterated its position on digital currencies such as bitcoin and Litecoin in a paper released recently. Effectively deeming such currencies as illegal, the paper emphasized laws such as the Namibia’s Exchange Control Act of 1966 which prohibits digital currency exchanges from being established in the country. Also the paper went on to further prohibit transactions being carried out with the aid of digital currencies, retail or private.
“For example, a local shop is not allowed to price or accept virtual currencies in exchange for goods and services. Users of virtual currencies should therefore exercise caution when dealing in this type of currencies or when comparing it to e-money,”
The paper also prohibited the casual use of cryptocurrencies to pay for goods even going far as to warning retailers against permitting customers to use the currency as a form of payment. With activities such as money laundering once again cited as reasons for the ban, the bank also highlights how limited legal regulation surrounding the trade of such currency makes it ideal for criminals and such.
“In addition to the bank not recognizing virtual currencies as legal tender in Namibia, it also does not recognize it to be a foreign currency that can be exchanged for local currency. This is because virtual currencies are neither issued nor guaranteed by a central bank nor backed by any commodity.”
To conclude, Bitcoin has officially been made illegal in Namibia, with anyone using the digital coin effectively committing a criminal offence. This leaves the likes of South Africa and Nigeria as the biggest countries embracing the technology of the future. With exchange’s such as NairaEX, serving Nigerians, the position of bitcoin on the continent remains strong. BTC.NG does not condone bitcoin trading if it illegal in your country. Please seek legal advice if you do decide to use bitcoin.