Tanzania turns from crypto warnings to crypto rules

The @BankOfTanzania is putting the finishing touches on its first regulatory framework for cryptocurrencies, stablecoins, and virtual assets. Governor Emmanuel Tutuba made the announcement at the 50th Dar es Salaam International Trade Fair on July 13 and 14, confirming that a comprehensive study of the sector is complete and the framework now awaits government sign-off before it can take effect.

"We are currently finalising the preparation of laws and regulations for the supervision of digital assets, particularly virtual assets, cryptocurrencies and stablecoins, so that we can strengthen regulation and oversight," Governor Tutuba said.

A sharp reversal from 2019

The move marks a striking change of direction. Back in 2019, the Bank of Tanzania issued explicit warnings against cryptocurrency trading, pointing to the risks of operating in an unregulated space. The same institution is now building the rules it once said did not exist.

The policy shift has been gradual. A 3% withholding tax on digital asset transactions was introduced under the Finance Act 2024, signaling that authorities viewed crypto less as a threat and more as a taxable reality. Then, in May 2026, the central bank went further. 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.

The central bank said it decided to push ahead with a regulatory framework following increasing public interest in cryptocurrencies, especially among young people, alongside growing concerns over reported financial losses among some investors. Governor Tutuba emphasized that the completed study aims to enhance investor protection, mitigate risks like money laundering and fraud, and safeguard financial stability.

No timeline, but the direction is clear

The Bank of Tanzania has not provided a specific timeline for when these regulations will take effect. Market participants are expected to watch for details on licensing requirements, compliance obligations, anti-money laundering standards, and supervisory responsibilities once the framework is formally introduced. Until then, the announcement should be viewed as a policy direction rather than the immediate introduction of new crypto laws.

Tanzania is not alone in moving this way. Kenya's Credit Bank recently sought approval from the Central Bank of Kenya for a pilot involving a dollar-backed stablecoin, following the passage of the Virtual Asset Service Providers Act in 2025. The move signals a broader shift in how regulators across emerging markets are approaching digital assets, with authorities increasingly opting for controlled experimentation rather than outright restrictions. The race to formalize crypto in East Africa is on. Tanzania, with its study done and its sandbox already running, looks to be near the front.

Sources:
BitKE: Bank of Tanzania Finalising Crypto and Stablecoin Regulations
Coin Edition: Bank of Tanzania Advances Crypto Regulation
Africa Business Communities: Bank of Tanzania Greenlights First Stablecoin Sandbox Pilot