Tanzania

## Report: Retail Cryptocurrency Trading Status in Tanzania

**Topic:** Retail_Trading_Status
**Description:** Assessment of whether individual citizens and residents in Tanzania are legally permitted to buy, sell, and hold cryptocurrencies, including the regulatory environment surrounding this activity (e.g., KYC/AML requirements, general warnings).

**1. Identified Status:**

**Gray-Zone**

**2. Detailed Narrative Explanation:**

The status of retail cryptocurrency trading in Tanzania falls into a **Gray-Zone**. While not explicitly illegal, it exists in a complex and uncertain regulatory environment characterized by official warnings, a lack of specific crypto-focused legislation, recent tax introductions, and ongoing research by the central bank.

Historically, the Bank of Tanzania (BoT) has maintained a cautious and prohibitive stance. In November 2019, the BoT issued a public notice explicitly advising the public against trading, marketing, and using virtual currencies (cryptocurrencies) [7, 15]. The notice stated that such activities contravene existing foreign exchange regulations and reiterated that the Tanzanian Shilling is the sole legal tender in the country [3, 7]. The BoT emphasized that it is the only institution mandated to issue currency and declare legal tender [3, 7]. This notice effectively banned the *use* of cryptocurrencies as legal tender and warned against trading activities [5, 9, 10].

Despite this strong warning, there has been no specific legislation enacted to formally ban the ownership or trading of cryptocurrencies by individuals [2, 3]. Furthermore, the BoT has reportedly not taken enforcement action against individuals or businesses involved in cryptocurrency trading [3]. This lack of enforcement and specific prohibition creates ambiguity.

Adding to the complexity, in June 2021, Tanzania's President Samia Suluhu Hassan acknowledged the growing global trend of cryptocurrencies and urged the BoT to prepare for these changes, stating that the central bank should "be ready for the changes and not be caught unprepared" [3, 5]. This signaled a potential shift in perspective at the highest level of government, although the BoT's official stance remained cautious.

As of late 2022, the BoT Governor reiterated that cryptocurrencies were considered unsafe and that the bank was still researching them, with no timeline for regulations [3]. The BoT continues to research the possibility of a Central Bank Digital Currency (CBDC), adopting a "phased, cautious and risk based approach" [16]. Updates in June 2024 confirmed this ongoing research into CBDCs [3].

A significant development occurred with the Finance Act 2024 (effective July 1, 2024), which introduced a 3% withholding tax on payments made by digital asset exchange platform owners (specifically targeting non-resident platforms) to resident persons for the exchange or transfer of digital assets, including cryptocurrencies [4, 5, 17, 20]. While this imposes a tax obligation, it implicitly acknowledges that such transactions are occurring and are subject to taxation, rather than being outright illegal [5, 8]. This tax measure, however, does not constitute a comprehensive regulatory framework for licensing or consumer protection [20].

Furthermore, a High Court decision in 2024 (Yellow Card Tanzania Limited v. Nyamwero Michael Nyamwero) ruled that contracts involving cryptocurrency transactions are not inherently illegal simply due to the lack of a specific regulatory framework [8, 9, 10]. The court noted that the absence of regulation does not equate to illegality [8, 10].

Therefore, individuals in Tanzania can, and reportedly do, engage in retail cryptocurrency trading, often through international exchanges [3]. However, they do so without specific regulatory protections or clear legal standing, facing warnings from the central bank about risks and the non-legal tender status of cryptocurrencies [3, 7]. The introduction of the digital asset tax adds a layer of formal recognition but also a compliance burden, without clarifying the broader legality or establishing consumer protection measures [4, 20]. The Capital Markets and Securities Authority (CMSA) has also introduced sandbox regulations, potentially paving the way for fintech innovation, but specific crypto regulations are still absent [19, 23]. The overall situation remains ambiguous – not fully banned, but operating without clear permission or dedicated regulation, hence fitting the "Gray-Zone" status.

**3. Relevant Text Excerpts:**

*   **Bank of Tanzania (November 2019):** "This is to advise members of the public against trading, marketing and usage of virtual currency because doing so is contrary to existing foreign exchange regulations. The Bank of Tanzania, therefore, reiterates that the only acceptable and used legal tender in the country is the Tanzanian Shilling." [7]
*   **Bank of Tanzania (November 2019):** "By this notice, the Bank of Tanzania cautions members of the public to beware of involvement in the virtual currencies, as they are not legally authorized in Tanzania." [7]
*   **TanzaniaInvest (June 2024 Update):** "The legality of trading Bitcoin and cryptocurrencies in general in Tanzania is unclear... However, the BOT has not taken any enforcement action against individuals or businesses that trade Bitcoin or cryptocurrencies as there is still, to date, no specific regulation for the use of cryptocurrencies in Tanzania." [3]
*   **PwC Tanzania (January 17, 2025):** "In Tanzania, the Finance Act 2024 (“the Act”) which was effective since 1 July 2024 introduced a 3% withholding tax on payments by an owner of a digital asset exchange platform made to a resident person (who is the owner of the digital asset) for the exchange or transfer of the asset... The Act defines digital assets broadly, enclosing cryptocurrencies, tokens, and Non fungible tokens (NFTs)." [4]
*   **The Chanzo (June 22, 2024):** "While the global market value of cryptocurrency stands at $2.46 trillion (2.2 percent of the global GDP), Tanzania does not have a specific legal framework for digital assets. The country's approach to digital currency has been cautious, without intrusive measures against individuals engaging in these assets." [5]
*   **Dentons (March 17, 2025, regarding High Court Case):** "The Court noted that the lack of a legal framework on cryptocurrencies does not render them illegal in Tanzania... The Court pronounced that engaging in electronic transactions using cryptocurrencies is not illegal in Tanzania." [8]
*   **IPPmedia / The Guardian (September 16, 2024):** "Tanzania's digital asset landscape remains in regulatory limbo. There are no specific laws governing the use, trading, or mining of cryptocurrencies, leaving the market in a gray area." [6]

**4. Source URLs:**

*   **[2] Freeman Law - Tanzania & Cryptocurrency:** [https://freemanlaw.com/tanzania-cryptocurrency-laws/](https://freemanlaw.com/tanzania-cryptocurrency-laws/) (Provides overview of BoT stance and lack of framework)
*   **[3] TanzaniaInvest - Cryptocurrencies in Tanzania (June 2024 Update):** [https://www.tanzaniainvest.com/finance/cryptocurrencies-tanzania](https://www.tanzaniainvest.com/finance/cryptocurrencies-tanzania) (Details BoT warnings, lack of enforcement, Presidential comments, ongoing research)
*   **[4] PwC Tanzania - From T Shillings to Satoshi:** [https://www.pwc.com/tz/en/press-release/navigating-uncharted-territory.html](https://www.pwc.com/tz/en/press-release/navigating-uncharted-territory.html) (Discusses BoT notice, Presidential comments, Finance Act 2024 tax)
*   **[5] The Chanzo - Tanzania Targets Cryptocurrency in a New Tax Push:** [https://thechanzo.com/2024/06/22/tanzania-targets-cryptocurrency-in-a-new-tax-push-here-is-why-the-country-needs-to-build-its-capacity-on-cryptocurrency-faster/](https://thechanzo.com/2024/06/22/tanzania-targets-cryptocurrency-in-a-new-tax-push-here-is-why-the-country-needs-to-build-its-capacity-on-cryptocurrency-faster/) (Covers Finance Act 2024 tax, lack of legal framework, BoT's 2019 ban)
*   **[6, 20] IPPmedia / The Guardian - The future of digital assets in Tanzania:** [https://www.ippmedia.com/en/features/future-digital-assets-tanzania](https://www.ippmedia.com/en/features/future-digital-assets-tanzania) (Describes regulatory limbo, gray area, Finance Act 2024 tax impact)
*   **[7] Bank of Tanzania - Public Notice on Cryptocurrencies (November 2019):** [https://www.bot.go.tz/Publications/Public%20Notices/Swahili/PUBLIC%20NOTICE%20ON%20CRYPTOCURRENCIES.pdf](https://www.bot.go.tz/Publications/Public%20Notices/Swahili/PUBLIC%20NOTICE%20ON%20CRYPTOCURRENCIES.pdf) (Primary source for BoT warning)
*   **[8] Dentons - The evolving regulatory landscape of cryptocurrencies in Tanzania:** [https://www.dentons.com/en/insights/alerts/2025/march/17/the-evolving-regulatory-landscape-of-cryptocurrencies-in-tanzania](https://www.dentons.com/en/insights/alerts/2025/march/17/the-evolving-regulatory-landscape-of-cryptocurrencies-in-tanzania) (Discusses High Court ruling on legality of crypto transactions)
*   **[9] Afriwise - The Yellow Card Precedent:** [https://live.afriwise.com/insights/the-yellow-card-precedent-a-catalyst-for-tanzanias-cryptocurrency-regulatory-framework](https://live.afriwise.com/insights/the-yellow-card-precedent-a-catalyst-for-tanzanias-cryptocurrency-regulatory-framework) (Covers BoT stance and High Court case implications)
*   **[10] ALN Africa - The Yellow Card Precedent:** [https://www.aln.africa/news/tanzania/the-yellow-card-precedent-a-catalyst-for-tanzanias-cryptocurrency-regulatory-framework/](https://www.aln.africa/news/tanzania/the-yellow-card-precedent-a-catalyst-for-tanzanias-cryptocurrency-regulatory-framework/) (Details BoT stance, High Court case, and lack of regulation vs illegality)
*   **[15] FIN & LAW - Cryptocurrency in Tanzania:** [https://www.finandlaw.com/cryptocurrency-in-tanzania/](https://www.finandlaw.com/cryptocurrency-in-tanzania/) (References BoT 2019 notice)
*   **[16] Bank of Tanzania - Progress on Central Bank Digital Currency (January 14, 2023):** [https://www.bot.go.tz/Publications/Public%20Notices/English/PUBLIC%20NOTICE%20ON%20CBDC%20PROGRESS%20-%2014%20JAN%202023.pdf](https://www.bot.go.tz/Publications/Public%20Notices/English/PUBLIC%20NOTICE%20ON%20CBDC%20PROGRESS%20-%2014%20JAN%202023.pdf) (Details BoT's approach to CBDC research)
*   **[17] HackerNoon - 2025: More Than 100 Jurisdictions Have Crypto Regulation:** [https://hackernoon.com/2025-more-than-100-jurisdictions-have-crypto-regulation](https://hackernoon.com/2025-more-than-100-jurisdictions-have-crypto-regulation) (Mentions Tanzania's 2024 Finance Act tax)
*   **[19] CNBC Africa - Tanzania's CMSA private equity, venture capital & sandbox regulations:** [https://www.cnbcafrica.com/media/6359790111112/tanzanias-cmsa-private-equity-venture-capital-sandbox-regulations-impact-on-growth-investment/](https://www.cnbcafrica.com/media/6359790111112/tanzanias-cmsa-private-equity-venture-capital-sandbox-regulations-impact-on-growth-investment/) (Mentions CMSA sandbox regulations)
*   **[23] Capital Markets and Securities Authority (CMSA) Tanzania - Home:** [https://www.cmsa.go.tz/](https://www.cmsa.go.tz/) (Official website of the securities regulator)