The Bank of Tanzania is reportedly finalizing a new regulatory framework to oversee cryptocurrencies and stablecoins.
Key Takeaways
- Bank of Tanzania Governor Emmanuel Tutuba announced a new plan to regulate digital assets.
- The laws will govern stablecoins and cryptocurrencies like bitcoin to protect young local investors from risk.
- Next, Tanzania will implement the final regulations to target money laundering and system-wide security risks.
Protecting Young Investors
Tanzanias central bank is preparing a new regulatory framework for digital assets as authorities move to strengthen oversight of a rapidly expanding market and protect investors, Bank of Tanzania Governor Emmanuel Tutuba said this week.
Tutuba, who made the announcement during a visit to the Bank of Tanzania pavilion at the 50th Dar es Salaam International Trade Fair, said the institution is finalizing laws and regulations to guide the supervision of virtual assets amid rising public interest, especially among young investors.
“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 is Tanzanias latest push to build a legal framework for virtual assets, aligning it with other nations trying to manage digital finance risks while supporting innovation.
The governor said the central bank has received complaints from individuals who lost money in cryptocurrency-related transactions, underscoring the need for stronger consumer protection.
“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.
He added that the regulations would also address risks tied to money laundering, terrorist financing and other illicit activities sometimes associated with 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,” Tutuba said.
The Bank of Tanzania has expanded oversight of digital financial services in recent years as electronic payments and financial technology grow as part of broader efforts to modernize the financial sector.
Tutuba said the upcoming rules would help the central bank supervise digital asset activity more effectively while maintaining financial stability and safeguarding consumers.
During his visit, he toured digital financial services showcased at the central banks pavilion and said public exhibitions such as the trade fair help improve financial literacy and raise awareness of emerging financial technologies. He also visited the Ministry of Finance pavilion, where he commended efforts to promote public understanding of financial services through interactive displays.