- Bank of Tanzania drafts crypto rules as governor warns of terror finance risks.
- New framework aims to protect investors amid rising crypto adoption in Tanzania.
- New crypto regulations will require firms to operate under central bank oversight and rules.
The Bank of Tanzania is about to come up with a new regulatory framework for cryptocurrencies, stablecoins, and other virtual assets as the country moves toward formal oversight of its growing digital asset market.
Governor Emmanuel Tutuba said the central bank is finalizing laws that will regulate the sector, protect investors, and address financial crime risks, including money laundering and terrorist financing.
Speaking during a visit to the Bank of Tanzania pavilion at the 50th Dar es Salaam International Trade Fair, Tutuba said the central bank has already completed a comprehensive study on digital assets and is now awaiting government guidance before rolling out the regulatory framework.
Tanzania Moves Toward Crypto Regulation
Tutuba said the new rules are being designed to supervise virtual assets, cryptocurrencies, and stablecoins as adoption continues to rise across the country, particularly among younger investors.
According to the governor, the central bank has received multiple complaints from individuals who suffered losses in cryptocurrency-related investments. Those reports have bolstered the case for introducing clear regulations that protect consumers without blocking financial innovation.
He said the objective is to create an environment where digital asset activities can operate under defined rules while allowing Tanzania to keep pace with developments in global finance.
The Bank of Tanzania had previously taken a much stricter position. In 2019, it warned citizens against trading or using cryptocurrencies, stating that digital assets were not recognized as legal tender and violated existing foreign exchange regulations. The latest proposal marks a significant shift from that approach.
Money Laundering and Terror Finance Risks
Tutuba said the upcoming regulations will also focus on preventing illicit financial activity. He warned that virtual assets can be used for money laundering and terrorist financing if left without proper oversight.
The new framework will require participants in the digital asset market to operate under official guidelines issued by the central bank, allowing authorities to monitor activity more effectively while supporting financial stability.
Alongside consumer protection, the regulations are expected to address fraud risks and preserve the integrity of Tanzania’s financial system as digital assets become more widely used.
Policy Shift Follows Stablecoin Pilot
The regulatory push comes not long after the Bank of Tanzania approved the country’s first stablecoin sandbox project.
In May, fintech company NEDA Labs received approval to test nTZS, a Tanzanian shilling-backed stablecoin, within the central bank’s fintech regulatory sandbox.
The token is fully backed by Tanzanian shilling reserves on a one-to-one basis, operates on the Base blockchain, and is limited to approved sandbox participants. It also generates yields through investments in Bank of Tanzania treasury bills.
The approval reflected a broader policy change, with regulators increasingly choosing controlled testing environments instead of outright restrictions on digital asset innovation.
Related: IMF Warns Nigeria’s Rapid Stablecoin Adoption Poses Monetary Risks
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