Is crypto legal in Tanzania? Regulation & rules (2026)

In November 2019 the Bank of Tanzania issued a public notice warning the public against trading, marketing, and using virtual currencies, stating the Tanzania Shilling is the sole legal tender. This notice has not been elevated to a statutory prohibition, and the December 2024 High Court ruling effectively confirmed that crypto activity is not illegal.

The Finance Act 2024, in force since 1 July 2024, defined digital assets broadly (cryptocurrencies, tokens, NFTs) and imposed a 3% withholding tax on payments made through digital-asset exchange platforms to resident owners, marking the first time digital assets were formally recognised in Tanzanian statute.

In Yellow Card Tanzania Ltd v. Nyamwero (High Court Commercial Case No. 12171 of 2024, decided 13 December 2024), the court held that cryptocurrency transactions are not illegal because operators pay taxes under existing law, and ruled the settlement contract enforceable, awarding USD 1.193 million. This is Tanzania's leading judicial pronouncement on the legality of crypto.

Virtual assets and VASPs have been incorporated into Tanzania's AML/CFT framework via amendments to the Anti-Money Laundering Act Cap. 423, imposing KYC, record-keeping, and suspicious-transaction-reporting obligations. However, no standalone VASP licensing law, capital requirements, or conduct rules have been enacted.

The Bank of Tanzania is actively researching a Central Bank Digital Currency (CBDC) intended to serve as legal tender alongside notes and coins. As of mid-2026 no enabling legislation, pilot programme, or issuance timeline has been announced.

Tanzania has no rules on stablecoin issuance, crypto custody, token offerings (ICO/STO), or DeFi. Experts and legal commentary note the country still falls short of full FATF compliance on virtual assets and has not matched Kenya's dedicated VASP Act passed in the same period.