Empowering Consumers: The Purchaser’s Right of Withdrawal in Namibia’s Virtual Assets Act 2023(Section 30)

In Namibia, the Virtual Assets Act of 2023 includes provisions (Section 30) that empower purchasers of virtual tokens with the right of withdrawal, reinforcing consumer protection within the dynamic virtual asset landscape.

Essential Components of Section 30:

Right of Withdrawal:

Section 30 grants purchasers of virtual tokens the right to withdraw their purchase by providing written notice to the token issuer.

Timeframe for Withdrawal:

The purchaser’s notice of withdrawal must be submitted within 72 hours after the agreement to purchase the virtual token.

Prompt Refund by Token Issuer:

Upon valid withdrawal, the token issuer is obligated to promptly refund all funds paid by the purchaser. This refund must be completed within five working days from the date of the purchaser’s withdrawal request.

Significance and Consumer Safeguards:

Consumer Empowerment:

The provision establishes a mechanism for consumers to reconsider their virtual token purchase within a reasonable timeframe, enhancing consumer empowerment and choice.

Timely Refund Process:

By setting a specific timeframe for the refund process, the provision ensures that purchasers receive their funds promptly, contributing to a fair and efficient market.

Balancing Interests:

Section 30 strikes a balance between the interests of token issuers and purchasers, recognizing the need for flexibility in the early stages of virtual token transactions.

Preventing Hasty Decisions:

The 72-hour window allows purchasers to carefully evaluate their decision and withdraw if they have second thoughts, contributing to responsible and informed investment practices.

Conclusion:

Incorporating a purchaser’s right of withdrawal in Section 30 reflects Namibia’s commitment to consumer protection in the virtual asset domain. This provision contributes to building trust in the market, fostering responsible investment practices, and ensuring a fair and transparent virtual asset ecosystem.