DAR ES SALAAM: Tanzania’s central bank is finalising laws and regulations to oversee cryptocurrencies, stablecoins and other virtual assets, Governor Emmanuel Tutuba said, as the country moves to regulate a fast-growing digital asset market while seeking to protect investors and 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 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,” 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 had received complaints from investors who had incurred losses in cryptocurrency-related transactions, prompting 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.
He said the regulations would also address risks linked to money laundering, terrorist financing and other illicit financial activities 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,” Mr Tutuba said.
The Bank of Tanzania has in recent years expanded oversight of digital financial services as electronic payments and financial technology continue to grow, reflecting broader efforts to modernise the country’s financial sector.
Mr Tutuba said the new regulations would enable the central bank to supervise digital asset activities more effectively while maintaining financial stability and protecting consumers.
During his visit, the governor toured digital financial services exhibited at the BoT pavilion and said public exhibitions such as the trade fair provide an opportunity to improve financial literacy and increase public 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 exhibitions.