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Another warning against investments in cryptocurrencies

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WINDHOEK, Namibia (CU)_The Bank of Namibia (BoN) has warned those investing in digital currencies, pointing out that it will not entertain complaints from victims of crypto scammers.

The bank’s spokesperson, Kazembire Zemburuka, shared these views in response to a question raised by The Namibian regarding whether the BoN had received any complaints from those who claim to have been scammed while attempting to speculate on cryptocurrencies. The question was raised in light of a communiqué issued by Bank Windhoek that some of its customers had lost money due to Crypto Scammers.

According to Zemburuka, Namibia’s central bank has observed that individuals trading digital currencies have been promised high returns or have been solicited of funds in order to have digital currencies traded on their behalf. However, digital currency is not covered in the BoN’s mandate, and therefore, the bank has no legal power to follow up on and compensate for victims of such scams.

“Thus, members of the public who do so will have no recourse to the bank in the event of financial loss or misfortune,” the spokesperson said.

He also explained that the bank’s position on cryptocurrencies has not changed since 2018, when it was communicated that the BoN does not recognise, recommend or encourage the possession, utilisation and trading of digital currencies by Namibians. Nevertheless, since then, the central bank has conducted several researches suggesting that Namibia’s central financial institution is looking into if and how cryptocurrencies could fit into the payment system of the country. 

“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 finalised,” Zemburuka said.

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