Tanzania’s central bank is finalizing laws and regulations to oversee cryptocurrencies, stablecoins, and other virtual assets, according to Governor Emmanuel Tutuba. The initiative comes as the country seeks to regulate a rapidly growing digital asset market, while protecting investors and safeguarding the financial system.
The proposed framework will establish rules for supervising digital assets as interest in cryptocurrencies rises, particularly among young investors, Mr Tutuba said during a visit to the Bank of Tanzania (BoT) pavilion at the 50th Dar es Salaam International Trade Fair.
“We are currently finalizing 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,” he said.
The move marks Tanzania’s latest step towards creating a legal framework for virtual assets, bringing it into line with a growing number of countries that are introducing regulations to manage risks associated with digital finance while supporting financial innovation.
Mr Tutuba said the central bank has received complaints from investors who suffered losses in cryptocurrency-related transactions, which has highlighted the need for stronger oversight.
“Many young people are investing in this area, but we have also received complaints from people who have lost money. We are therefore looking at how to put in place an enabling environment that will protect Tanzanians from further harm,” he said.
The regulations are also intended to address risks associated with money laundering, terrorist financing, and other illicit financial activities involving virtual assets.
“These are areas that carry many risks and in some cases they are used for money laundering and terrorist financing. That is why we are preparing regulations so that those participating in these activities will operate in accordance with the guidelines that will be issued,” Mr Tutuba explained.
The Bank of Tanzania has recently broadened its supervision of digital financial services, reflecting wider efforts to modernize Tanzania’s financial sector as electronic payments and financial technology continue to expand.
Mr Tutuba said the new rules will allow the central bank to supervise digital asset activities more effectively, maintain financial stability, and protect consumers.
During his visit, the governor toured digital financial services displayed at the BoT pavilion and said public exhibitions help improve financial literacy and raise awareness of emerging financial technologies.
He also visited the Ministry of Finance pavilion, commending efforts to strengthen public understanding of financial services through interactive exhibitions.
