BoT completes regulatory concept framework for crypto regulation

The proposal, which has been submitted to the Ministry of Finance, marks Tanzania's most significant step yet towards establishing a legal and regulatory framework for a sector that currently operates outside the country's regulated financial system.

BoT Governor Mr Emmanuel Tutuba told The Citizen that the concept would now undergo policy and legal processes before being translated into laws and regulations.

"We have completed the assessment and developed a concept on the regulation and supervision of virtual assets. The concept has been submitted to the Ministry of Finance for further development," Mr Tutuba said.

He said the next stage would involve preparing laws and regulations capable of addressing both the opportunities and risks associated with digital assets.

"We are currently finalising laws and regulations for the supervision of digital assets, particularly virtual assets, cryptocurrencies and stablecoins, to strengthen regulation and oversight," he said.

The proposed framework is expected to provide legal certainty for businesses and individuals dealing in virtual assets while enhancing consumer protection, market oversight and financial stability.

The move follows President Samia Suluhu Hassan's directive in June 2021 urging the central bank to prepare for cryptocurrencies and blockchain technology, warning that Tanzania should not be left behind as digital finance evolves globally.

At the time, she said a new internet-based financial era was emerging and urged regulators to study virtual assets instead of ignoring technological developments. Virtual assets are digital representations of value that can be traded, transferred or used for investment and payments. They include cryptocurrencies, stablecoins and non-fungible tokens (NFTs), but exclude digital versions of government-issued currencies.

The latest development represents a shift from the BoT's previous stance, which focused primarily on warning the public about the risks of cryptocurrencies because they were neither recognised as legal tender nor regulated by the central bank. However, the rapid growth of digital assets worldwide and increasing interest in blockchain technology have prompted authorities to explore how the sector can be regulated without compromising financial stability.

According to the BoT's 2024 Annual Financial Inclusion Report, the National Cryptocurrency Technical Committee conducted a pilot assessment of cryptocurrency activities in mainland Tanzania and Zanzibar. The exercise examined transaction volumes, trading patterns and regulatory risks using data obtained from cryptocurrency exchanges, blockchain explorers and digital wallets. The findings indicated growing public awareness of and participation in cryptocurrency trading through online platforms. The virtual assets initiative is separate from the Bank of Tanzania's ongoing work on a possible central bank digital currency (CBDC).

In 2025, BoT Director of Financial Deepening and Inclusion Mr Kennedy Komba said the central bank was undertaking a comprehensive study to assess the potential impact of a CBDC on Tanzania's financial ecosystem, payment systems and overall readiness.

Unlike cryptocurrencies, which are privately issued or decentralised and whose values can fluctuate significantly, a CBDC would be issued and backed by the central bank. Stablecoins, meanwhile, are designed to maintain a relatively stable value by being linked to an underlying asset or reference value.

Mr Tutuba did not indicate when the proposed laws and regulations would be finalised or implemented.

Independent financial analyst Mr Oscar Mkude welcomed the move, saying many Tanzanians had long expressed interest in virtual assets, while others were already participating in the market despite the absence of a legal framework.

"Virtual assets are borderless, allowing people to participate in the market from anywhere in the world. Establishing regulations will help authorities better understand the industry and those involved," he said.

"The future of cryptocurrencies remains uncertain. It is a revolution, but the technology is still being studied to understand how it will fit into society and transform people's lives."

Once enacted, the regulatory framework is expected to address key issues including consumer protection, cybersecurity, financial crime, market integrity and financial stability, bringing Tanzania closer to jurisdictions that have already established oversight for digital assets.