The Bank of Namibia(BON) has warned crypto traders that it will not be able to address their complaints should they get scammed. The institution cited the limitation of its current mandate, which does not cover cryptocurrencies, as the reason for this risk warning. Bank of Namibia Warns Against Crypto Scams Amid Rising Interest Namibia has seen a sharp growth in the number of people investing in cryptocurrencies. But the trend has also attracted scammers who trap ill-informed customers with advertisements on social media. Fraudulent groups promise impressive returns as well as training opportunities to lure unsuspecting victims with poorly developed websites, using photos that cannot be verified on Google. Since crypto companies are unregulated in the country, authorities cannot guarantee the authenticity of crypto-related transactions. The latest warning from BON comes amid growing complaints from investors who’ve lost significant money to crypto scams. Meanwhile, in response to a query raised by a local media outlet, the central bank’s spokesperson, Kazembire Zemburuka said that the institution, “does not recognize, support and recommend the possession, utilization, and trading of cryptocurrencies by members of the public.” Additionally, in a reiteration of BON’s stance on crypto trading, Zemburuka asserted: “Thus, members of the public who do so will have no recourse to the bank in the event of financial loss or misfortune.” BON Will Update Position After Concluding Research on Cryptocurrencies A BON spokesperson revealed that despite its current warning, the institution is “in the process of conducting further research on cryptocurrencies.” According to reports, the bank is open to revising its opinion of cryptocurrencies if research results are favorable. BON continues to monitor crypto businesses in line with the position adopted in 2018. According to the Currency and Exchanges Act of 1933, any cryptocurrency exchanges operating in Namibia are “illegal” at the moment. Also, there is no legal provision that allows for the establishment of crypto exchanges and bureaus.
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