The Bank of Tanzania is reportedly finalizing a new regulatory framework to oversee cryptocurrencies and stablecoins, Governor Emmanuel Tutuba announced this week, warning that digital assets can be exploited for money laundering and terror financing. The central bank’s move comes amid rapid expansion of the country’s crypto market and rising concerns over investor losses, particularly among young investors.
Tutuba stated that the framework is designed to protect investors after the bank received complaints from individuals who lost money in cryptocurrency transactions. The new rules aim to bring oversight to a market that has operated largely outside the formal financial system while addressing financial crime vulnerabilities that authorities say could be used by illicit actors.
The central bank has been monitoring crypto adoption for some time and has identified risks ranging from consumer losses to potential use in illicit finance. Governor Tutuba emphasized that the new rules are intended to protect investors and maintain the integrity of the financial system.
The regulatory push is part of a broader effort by the Bank of Tanzania to modernize the financial sector and expand oversight of digital financial services. The central bank has been monitoring crypto adoption and identified the need for a legal structure to govern digital assets. The framework is expected to include measures to reshape how digital assets operate in the country.