Tanzania’s cryptocurrency rules are still developing. At present, cryptocurrencies are not specifically regulated under Tanzanian law. However, the regulatory position is expected to change. The Governor of the Bank of Tanzania (BoT) has announced that it has finalized a policy concept for a legal and regulatory framework for cryptocurrencies and virtual assets, with legislation expected to follow.
For businesses, investors, and service providers, the key issue is understanding what is permitted now, what risks remain, and what changes may be on the horizon. We set out below answers to the main questions clients are currently asking.

Q1: Is cryptocurrency legal in Tanzania?
Answer:
There is currently no law in Tanzania that specifically prohibiting, or regulates the issuance, trading, or use of cryptocurrencies. As a result, there is also no licensing framework for cryptocurrency service providers at this stage. The BoT has cautioned the public that cryptocurrency transactions are unregulated and may carry significant risk. That said, businesses and individuals continue to engage in cryptocurrency-related transactions, so the practical position is one of caution rather than a clear prohibition.

Q2: Can a company obtain a cryptocurrency licence in Tanzania?
Answer:
Not at the moment. Because Tanzania has not yet introduced a dedicated cryptocurrency regulatory framework, companies cannot currently apply for a cryptocurrency licence. However, businesses developing innovative crypto-related financial products may wish to consider the Bank of Tanzania Fintech Regulatory Sandbox. This can provide a supervised route for testing eligible products while regulators assess how the service fits within the existing financial sector framework.

Q3: Are cryptocurrency remittance services regulated?
Answer:
Not specifically. Tanzania’s current payment systems laws regulate remittance services involving fiat currency. They do not currently provide a dedicated framework for remittance services that use cryptocurrency or stablecoins. Businesses considering this model should therefore assess the regulatory position carefully before launching or marketing such services.

Q4: Are cryptocurrency transactions taxable?
Answer:
Yes. The absence of a full cryptocurrency regulatory framework does not mean that cryptocurrency transactions are outside the tax system. Section 83C of the Income Tax Act requires persons operating digital asset exchange platforms, or facilitating exchanges or transfers of digital assets, to withhold 3% withholding tax and remit it to the Tanzania Revenue Authority within seven days. Businesses involved in digital asset transactions should therefore consider their tax obligations from the outset.

Q5: Can businesses freely market cryptocurrency services in Tanzania?
Answer:
Businesses should be cautious. Even though there is currently no specific cryptocurrency licence, marketing crypto-related financial services may still raise regulatory concerns, particularly where the business is a bank, financial institution, payment service provider, or other regulated entity. In general, financial products offered by banks and financial institutions require BoT approval before they are introduced into the Tanzanian market. It is therefore advisable to seek regulatory guidance before launching or promoting crypto-related services.

Q6: What consumer protection rules apply?
Answer:
There are currently no consumer protection or disclosure rules that are designed specifically for cryptocurrencies in Tanzania. Existing disclosure obligations mainly apply to fiat currency products offered by banks and other licensed financial institutions. For client-facing services, businesses should nevertheless consider using clear risk disclosures, transparent terms, and appropriate customer safeguards as a matter of good practice.

Q7: What should businesses expect next?
Answer:
Businesses should expect more formal regulation. The BoT has confirmed that it has finalized a policy concept for regulating cryptocurrencies and virtual assets, which indicates that a legal framework is under development. Once enacted, the new regime may introduce licensing, supervision, compliance, and reporting requirements for cryptocurrency service providers operating in Tanzania. Businesses active in this space should therefore start preparing for a more regulated environment.

Conclusion
Tanzania is moving gradually toward a more structured approach to digital assets. For now, cryptocurrency activities operate in a largely unregulated environment, with no dedicated licensing regime. This creates both opportunities and risks for businesses. Companies operating in, or considering entry into, the cryptocurrency sector should monitor legal developments closely, assess tax and regulatory exposure, and engage with regulators where appropriate, including through the BoT Fintech Regulatory Sandbox. The expected legislation should provide greater certainty for market participants, investors, and consumers.