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Bank of Namibia Warns Crypto Scam Victims

Bank of Namibia Warns Crypto Scam Victims
  • The Bank of Namibia warns that it will not entertain crypto scam victims.
  • The warning comes in the wake of rising crypto scam reports in the country.
  • BON added that crypto exchanges operating in the country are illegal.

The Bank of Namibia (BON) has warned individuals in the country trading in crypto. According to a report, the bank will not entertain crypto scam victims or provide recourse to them.

The entity argues that it does not currently have the legal power to follow up on crypto complaints. At the same time, BON reiterated its previous crypto position from 2018. According to BON spokesperson, Kazembire Zemburuka, the Central Bank still “does not recognize, support, and recommend the possession, utilization, and trading of cryptocurrencies by members of the public.”

The BON warning comes at a time when a growing number of Namibian traders have fallen victim to crypto scammers. It seems the scammers are luring victims with promises of high returns and training opportunities. In addition, the scammers offer to trade on the victim’s behalf.

However, due to the lack of crypto legal status in the African nation, members of the public who fall victim to such scams.

  “will have no recourse to the bank in the event of financial loss or misfortune.”

Also, BON deems crypto exchanges operating in the country illegal, as supported by the country’s Currency and Exchange Act of 1933.

However, Zemburuka added,

“The bank is in the process of conducting further research on cryptocurrencies and will update its position if deemed necessary, once this additional research has been finalized.”

For now, Namibians should refrain from crypto trading, mining, or the exchanging of cryptos. Engaging in crypto-related activities is in fact contravening the provisions of the Financial Intelligence Act of 2012. Of note, FIA aims to prevent participation in money laundering, financing terrorism, and other illegal activities. Thus, failure to comply constitutes a criminal offense leading to a fine or imprisonment of up to 30 years.

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Avid reader and writer with a passion for sharing crypto news and trends. Uses her background in finance to help readers better understand the crypto market and investments. Hopes to see mainstream crypto adoption in the near future, especially in Africa.