BoT finalising crypto regulations
DAR ES SALAAM: THE Bank of Tanzania (BoT) is finalising laws and regulations to govern cryptocurrencies and other virtual assets, the central bank’s Governor, Emmanuel Tutuba, has said.
Speaking during his visit to the BoT pavilion at the ongoing 50th Dar es Salaam International Trade Fair (DITF) over the weekend, Mr Tutuba said the legal framework is intended to strengthen oversight of digital assets, while protecting investors from potential risks associated with the fast-evolving sector.
“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,” Mr Tutuba said.
He said the central bank decided to establish a regulatory framework after observing increasing public interest in digital assets, especially among young people, alongside growing concerns over financial losses reported by some investors.
“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.
According to Mr Tutuba, virtual assets present a number of risks that require proper oversight to safeguard both investors and the country’s financial system.
He said some digital assets have been associated with illicit financial activities, making it necessary for the authorities to introduce regulations that will guide participation in the sector.
“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,” he said.
Mr Tutuba said the regulations will enable the BoT to supervise the sector more effectively as the use of digital financial products continues to expand.
The Governor’s remarks indicate that the central bank is moving closer to establishing a formal regulatory framework for virtual assets, an area that has attracted growing public interest as more people explore digital investment opportunities.
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He said the BoT remains committed to ensuring that innovation in the financial sector goes hand in hand with measures that protect consumers and preserve the integrity of the country’s financial system.
During his visit to the pavilion, Mr Tutuba also toured a number of digital solutions showcased by the central bank, including services designed to improve access to financial services and enhance digital inclusion.
He said public exhibitions such as the DITF provide an important platform for educating citizens about financial services, investment opportunities and the role of the central bank in promoting a safe, stable and inclusive financial system.
The Governor also visited the Ministry of Finance pavilion, where he commended ongoing efforts to improve public financial literacy through interactive exhibitions and engagement with visitors attending this year’s trade fair.
