The Bank of Namibia (BON) has warned individuals investing in cryptocurrencies that if they are scammed, they will not consider their complaints. The institution argues that it lacks “legal authority” to investigate such complaints as its mandate does not currently cover digital currencies.
Growing Namibian interest in crypto
This latest BON warning about risks associated with trading cryptocurrencies comes as Namibia sees increasing reports of crypto investors losing money to scammers. As mentioned in a report, the scammers use the promise of high returns and training opportunities to lure their victims.
In response to a request from a local media company, central bank spokesman Kazembire Zemburuka claims that BON, as Namibia’s only legal tender, “does not approve, endorse or recommend possession, use or trade”. of cryptocurrencies by the public. “
While Namibia, like many other African countries, has taken a stance against cryptocurrencies, its citizens (as Zemburuka admits) are still interested in investing in cryptocurrencies. This interest, in turn, has prompted BON to issue a risk warning to crypto traders operating in their jurisdiction. Zemburuka said:
In this way, citizens who do this have no recourse to the bank in the event of property damage or disaster.
BON’s digital currency study
In the meantime, the BON spokesman reveals that the Bank of Namibia is currently “conducting further research on cryptocurrencies” despite the skeptical attitude of its organization towards digital currencies. According to the media report, upon completion of this additional investigation, the BON will “update its position if deemed necessary”.
Even so, the report still cites BON, which reiterates a position on cryptocurrencies originally adopted in 2018. The report also adds that all cryptocurrency exchanges established and operated in Namibia are “illegal,” a position supported by the country’s Currency and Exchanges Act of 1933. Under that law, the establishment of cryptocurrency exchanges or offices is currently in Namibia not provided.
What do you think of the BON’s latest comments on cryptocurrency trading? You can let us know what you think in the comments section below.
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