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

14 Nov 2025 | Blockchain Technology | by James Stanitz

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 officially ban crypto - but its banks sure act like it does. You can't buy coffee with Bitcoin at your local shop. You can't deposit crypto earnings into your NedBank or Standard Bank account without risking a freeze. And if you run a crypto exchange, you're stuck in a six-month limbo, waiting for permission to even start talking to customers.

Why Banks in Namibia Don't Trust Crypto

Back in 2018, the Bank of Namibia (BON) sent a clear message: crypto isn't money here. In a public statement, they declared that cryptocurrencies like Bitcoin aren't legal tender, aren't backed by the central bank, and if you lose money on them, you're on your own. No refunds. No protection. No recourse. That wasn't just a warning - it was a red flag to every bank in the country.

Since then, banks have interpreted that message as a green light to restrict accounts linked to crypto. People who joined crypto investment groups, traded on international exchanges, or even just held Bitcoin in a wallet have reported sudden account freezes. Legal experts say this is overreach. The Bank of Namibia doesn't have the power to make laws - only to enforce them. But in practice, they're acting like they do. That creates chaos for regular people. One trader in Windhoek lost access to his savings account after posting about buying Ethereum on a forum. He had to go to court just to get his money back.

The Virtual Assets Act of 2023: A Legal Loophole

In June 2023, Namibia passed the Virtual Assets Act of 2023 - a major shift. For the first time, the government acknowledged that digital assets exist and need rules. The law created a licensing system under NAMFISA (Namibia Financial Institutions Supervisory Authority). Any company offering crypto services - exchanges, wallet providers, trading platforms - now needs a license to operate. No license? You're breaking the law.

But here's the twist: the law licenses businesses, not users. It doesn't say crypto trading is legal for individuals. It just says companies can apply to serve customers - if they pass a million checks. So technically, you can't legally buy Bitcoin in Namibia... but a licensed company might be allowed to sell it to you. That's the gray zone everyone's stuck in.

The Provisional License Trap

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. Sounds promising, right? Not really.

These companies aren't allowed to do business with anyone in Namibia. Not yet. They're in a regulatory sandbox - a testing ground where they must build systems, hire staff, and prove they can follow every rule before they're allowed to open their doors. Even their names aren't public. Customers can't find them online. They can't advertise. They can't accept deposits. They can't process transactions.

And the clock is ticking. The provisional period is six months. Two of the three companies asked for extensions - one until May, another until July. Mindex got an extension until November 21, 2025. That means, as of today, they're still waiting. If they don't pass the final inspection by then, their license dies. No second chances. No appeals. Just silence.

The Travel Rule: Tracking Every Big Transaction

Under the new law, any crypto transaction over NAD 20,000 (about $1,000 USD) triggers the Travel Rule. That means every exchange must collect and share:

• Full name of sender and receiver
• Government ID number
• Bank account or wallet address
• Reason for the transfer

This isn't optional. It's automated. If you send $1,200 in Bitcoin to a friend in South Africa, the exchange has to report it to NAMFISA. Same if you cash out crypto to your bank account. The goal? To stop money laundering and terrorist funding. But it also means privacy is gone. There's no anonymous trading in Namibia anymore.

What Happens to Your Bank Account If You Trade Crypto?

This is where things get personal. If you're an individual who buys, sells, or holds crypto - even just once - your bank might flag your account. You might get a call from your bank saying your account is under review. They might freeze it. They might close it. They might not explain why.

There's no public list of who’s banned. No official policy. Just rumors and real cases. One woman in Swakopmund had her savings account shut down after using a peer-to-peer app to buy Bitcoin. She had no criminal record. No suspicious activity. Just crypto. She spent three months fighting to get her money back. She won - but only after hiring a lawyer.

Banks say they're following BON's 2018 guidance. But that guidance was never a law. It was a warning. And now, it's being used as a weapon against ordinary citizens.

Is Crypto Trading Legal in Namibia? The Official Answer

Ask the Bank of Namibia if crypto trading is legal, and they'll say: "No. We do not recognize cryptocurrencies as legal tender."

Ask NAMFISA if licensed exchanges can operate, and they'll say: "Yes - if they meet all requirements." So what’s the truth? It’s a contradiction. The government lets companies apply for licenses to handle crypto - but says the public can’t legally trade it. That’s not regulation. That’s control.

The result? Crypto traders operate in the shadows. People use offshore exchanges. They use P2P apps. They trade in cash. They hide their activity. And every time they do, they risk losing access to their bank accounts.

What’s Next for Crypto in Namibia?

The provisional licenses expire in late 2025. What happens after that? If the three companies pass inspection, they’ll become the only legal gateways to crypto in Namibia. That could mean:

• Only three platforms can sell Bitcoin
• High fees due to lack of competition
• Strict KYC - you’ll need ID, proof of address, and bank statements just to buy $100 in crypto
• Slow processing times - every transaction gets flagged and reviewed

If they fail? The entire system resets. No more provisional licenses. No more progress. The status quo returns: crypto is invisible, illegal, and risky.

Industry watchers say Namibia is trying to be the first in Southern Africa to get crypto regulation right. But right now, it looks more like a system designed to scare people away than one that encourages innovation.

What Should You Do If You Use Crypto in Namibia?

If you're holding Bitcoin, trading on international platforms, or thinking about starting a crypto business in Namibia, here’s what you need to know:

• Don’t link your crypto activity to your main bank account. Use separate accounts if possible.
• If you're a trader, keep records of every transaction - dates, amounts, wallet addresses.
• Don’t use unlicensed exchanges. Even if they’re cheaper, you’re at risk of losing everything.
• If your account is frozen, get legal help immediately. Banks can’t legally close your account without cause.
• Watch for announcements from NAMFISA. The next wave of licenses could change everything.

The system is broken - but not hopeless. The law is changing. The rules are being written. And if you're smart, you'll wait for the official green light - not gamble on the gray zone.