The Central Bank of Namibia has made a statement that all Cryptocurrency exchanges or relating transactions are to be declared illegal.

According to financial researchers, Cryptocurrencies have been linked to a number of different money laundering events that have taken place. Amongst the researchers were the Financial Action Task Force and the International Monetary Fund. A nine-page report that was released were the Bank of Namibia stated that

Bitcoin relating transactions pose a “minimal” threat to the central bank’s monetary policymaking role.

The report tries to inform people about the risks involved from using Cryptocurrency exchanges as a form of payment and why money laundering is always a possibility when it comes to such transactions taking place. One of the reasons behind this statement is that there is very little government support backing these currencies.

Namibia’s Trade Command Act of 1966 acknowledges that “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 issues nor guarantees by a central bank nor backup by any commodity”.

Although the report states that Bitcoin can be used, the lack of legal authority behind it makes it a no go in the eyes of the central bank.

The Central Bank of Namibia advises all consumers and merchants that caution should be presented when it comes to the use of virtual currencies in exchange for goods and services.

Posted by Editorial Team

Editors at large. Posting the latest news, reviews and analysis to hit the blockchain.