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

As of 2025, if you're trying to use Bitcoin or any other cryptocurrency in Namibia, you're walking a tightrope. The country doesn't outright ban crypto - but its banks? They're making it as hard as possible. You can't buy crypto with your NedBank account. You can't send money to a local exchange without risking your account being frozen. And if you're running a crypto business? You're stuck in a legal gray zone that’s still being sorted out - even after new laws were passed.

Why Banks Won’t Touch Crypto

The Bank of Namibia (BON) made its stance clear back in 2018: cryptocurrencies aren’t legal tender. They’re not money. They’re not commodities. And if you lose money trading them, tough luck - the bank won’t help you. That warning wasn’t just a footnote. It became the foundation for how banks treat crypto users today.

Major banks like NedBank and Standard Bank have quietly started flagging and restricting accounts tied to crypto activity. People running crypto investment clubs, buying Bitcoin on peer-to-peer platforms, or even just holding digital assets have reported sudden account freezes. No warning. No explanation. Just a message saying their account is under regulatory review.

Legal experts say this is a problem. The Bank of Namibia doesn’t have the power to make laws. Only Parliament can do that. Yet, the bank is acting like it does - using its control over the banking system to enforce a policy that’s not written in law. That’s why some lawyers are calling it an overreach. If BON thinks crypto is risky, they should go to court. Instead, they’re using bank account access as leverage.

The Virtual Assets Act of 2023: A Step Forward - But Not Enough

In June 2023, Namibia passed the Virtual Assets Act (Act No. 10 of 2023). This was the country’s first real attempt to regulate digital assets. It created a licensing system for Virtual Asset Service Providers (VASPs) - companies that offer crypto trading, wallet services, or exchange platforms. These businesses now have to register with NAMFISA, the financial watchdog, and follow strict anti-money laundering rules.

One big requirement? The Travel Rule. Any crypto transaction over NAD 20,000 (about $1,000 USD) must include full sender and receiver details - names, ID numbers, bank account info. That’s the same rule used in the EU and U.S. It’s meant to stop criminals from hiding behind anonymity. But here’s the catch: the law applies to businesses, not individuals. So if you’re buying Bitcoin from a friend in Windhoek? No one’s checking your ID. But if you’re using a local exchange? They’re required to log everything.

The Provisional License Trap

Here’s where things get messy. Even though the law passed in 2023, no crypto exchange has been allowed to operate openly in Namibia yet.

In January 2025, the Bank of Namibia gave provisional licenses to three companies: Landifa Bitcoin Trade CC, United PayPoint (Pty) Ltd, and Mindex Virtual Asset Exchange. But here’s the twist - they’re not allowed to do business. Not with anyone. Not even one transaction.

These companies are stuck in a six-month testing period. They can’t serve customers. They can’t accept deposits. They can’t even advertise. Their only job? Build systems, hire staff, and prove they can meet every single compliance requirement. The bank is watching closely. If they mess up, the license gets pulled.

Two of the three companies asked for extensions. Landifa got until July 31, 2025. United PayPoint until May 13, 2025. Mindex got until November 21, 2025. That’s more than a year after the law passed. And still, no one can legally trade crypto in Namibia.

The Bank of Namibia says this is about safety. But for businesses, it’s a waiting game with no clear finish line. And for regular people? It’s proof that even if the law says crypto is regulated, the banks still won’t let you use it.

What About Individual Users?

If you’re just holding Bitcoin or trading on Binance or Kraken from your phone, you might think you’re fine. But you’re not.

Banks monitor transactions. If you send money to a foreign crypto exchange, even once, your account could get flagged. Some users report being asked to prove the source of funds - even if they’re just selling a few Bitcoin they bought years ago. If they can’t prove it, the bank freezes the account. No appeal. No hearing.

There’s no official list of banned crypto activities. No public guidance. So people are left guessing. Is it illegal to own Bitcoin? No. Is it illegal to trade it? Technically, yes - because there’s no licensed platform to do it legally. Is it illegal to send money to a foreign exchange? The law doesn’t say. But banks are treating it like it is.

This uncertainty is scaring people away. Some are closing their crypto wallets. Others are moving their money offshore. A few are using cash or peer-to-peer deals - but those come with their own risks: scams, no buyer protection, and no recourse if things go wrong.

Why This Matters for Africa

Namibia isn’t alone in Africa in being cautious about crypto. But it’s one of the few countries that tried to build a formal regulatory system - then stopped short of letting it work.

Neighboring countries like South Africa and Nigeria have taken different paths. South Africa allows regulated exchanges and even has crypto ETFs. Nigeria has a thriving crypto market despite central bank pressure. Namibia’s approach is more like Zimbabwe’s early days - strict, slow, and full of contradictions.

The problem? Namibia wants to be seen as a serious financial player. But if you can’t use crypto legally, why would a startup choose to set up there? Why would a developer build a wallet for Namibians if the banks will shut them down?

The Virtual Assets Act could have made Namibia a regional leader. Instead, it’s becoming a case study in how not to regulate crypto: pass the law, then block everyone from using it.

What’s Next?

By the end of 2025, we’ll know if the three provisional license holders get full approval. If they do, it might open the door for others. If they’re rejected, the entire system could stall for years.

Until then, here’s the reality: if you’re in Namibia and you want to use crypto, you’re doing it at your own risk. Banks won’t help you. The law won’t protect you. And the government hasn’t decided if you’re allowed to.

The best advice? Don’t use your main bank account for crypto. Keep your crypto holdings separate. Avoid large transfers. And don’t assume that because a law exists, it’s safe to use.

Namibia’s crypto future isn’t written yet. But right now, the banks are holding the pen - and they’re not writing anything friendly.