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Is crypto legal in Tanzania? Rules & regulation (2026)

Crypto is developing in Tanzania.

Tanzania lacks a dedicated virtual-asset regulatory framework but has taken incremental steps toward one. The Finance Act 2024 (effective 1 July 2024) imposed a 3% withholding tax on digital-asset exchange payments and formally defined digital assets in statute for the first time. The Bank of Tanzania's 2019 public notice cautioned against crypto use and it remains non-legal-tender, yet a landmark December 2024 High Court ruling (Yellow Card case) established that cryptocurrency transactions are not illegal and crypto contracts are enforceable. Virtual assets have also been incorporated into Tanzania's AML/CFT framework without creating a dedicated VASP licensing regime.

Last verified Official sources first · MethodologyCompare Tanzania with other countries

Legal framework

No dedicated crypto statute; partial governance through Finance Act 2024 (digital-asset withholding tax, effective 1 July 2024), Anti-Money Laundering Act Cap. 423 (as amended through 2025) covering VASPs, Bank of Tanzania 2019 public caution notice, and High Court Commercial Case No. 12171 of 2024 (Yellow Card precedent). Primary oversight bodies: Bank of Tanzania (BoT) and Capital Markets and Securities Authority (CMSA).

Status by sub-area

  • Stablecoins

    None

    Tanzania has enacted no legislation or regulatory guidance specifically addressing stablecoin issuance, reserve backing, redemption rights, or audit requirements. Stablecoins would fall within the broad digital-asset definition in the Finance Act 2024 for tax withholding purposes but are otherwise entirely unaddressed.

  • Exchanges / VASP

    Partial

    No formal VASP or exchange licensing regime exists. However, exchanges are subject to AML/CFT obligations under the Anti-Money Laundering Act Cap. 423 (amended through 2025) — including KYC, record-keeping, and suspicious-transaction reporting — and must withhold 3% tax on digital-asset transactions under the Finance Act 2024.

    Still pending: Formal VASP/exchange licensing regime not enacted; only AML/CFT and tax withholding in place

  • Token Offerings

    None

    No ICO, STO, or token-offering framework has been issued by the CMSA or any other Tanzanian authority. The CMSA has acknowledged the relevance of tokenisation for capital markets but has not proposed securities-law classification, prospectus requirements, or investor exemptions for token sales.

    Still pending: CMSA to issue ICO/STO framework with securities classification and prospectus requirements

  • Custody

    None

    Tanzania has no qualified-custodian rules, client-asset segregation requirements, proof-of-reserves obligations, or insurance mandates specific to crypto custody. General fiduciary principles and AML/CFT rules would apply by analogy but no dedicated custody framework has been enacted.

    Still pending: Dedicated custody framework (segregation, proof-of-reserves, insurance) not enacted

  • DeFi

    Unclear

    Tanzania has issued no guidance on DeFi protocols, front-ends, or DAO treatment. The AML/CFT framework technically captures VASPs but enforcement posture toward decentralised, non-custodial protocols is entirely undefined, and no enforcement actions against DeFi are known.

    Still pending: DeFi protocol treatment under AML/CFT undefined; enforcement posture not clarified

  • Tax

    Partial

    The Finance Act 2024 (in force 1 July 2024) introduced a 3% withholding tax on digital-asset exchange payments to resident owners and broadly defined digital assets to include cryptocurrencies, tokens, and NFTs — the first statutory tax treatment of crypto in Tanzania. Capital-gains vs. income classification, VAT/GST, and the tax treatment of staking rewards, airdrops, and mining income are not yet separately addressed.

    Still pending: Capital gains vs. income classification and VAT treatment for crypto transactions not addressed

Key points: crypto & digital assets in Tanzania

  1. Bank of Tanzania 2019 Caution, Not a Statutory Ban

    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.

    tanzaniainvest.com dentons.com

  2. Finance Act 2024, First Statutory Recognition of Digital Assets

    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.

    ey.com clydeco.com

  3. Yellow Card High Court Precedent (December 2024)

    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.

    bowmanslaw.com aln.africa

  4. AML/CFT Coverage Without Dedicated VASP Licensing

    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.

    bentsienchill.com polity.org.za

  5. CBDC Research Underway, No Timeline

    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.

    tanzaniainvest.com dentons.com

  6. Significant Regulatory Gaps Persist

    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.

    pwc.co.tz bentsienchill.com

Sources

  1. dentons.com/en/insights/articles/2025/march/17/the-evolving-regulatory-landscape-
  2. ey.com/en_gl/technical/tax-alerts/tanzanian-finance-act-2024-makes-changes-a
  3. clydeco.com/en/insights/2024/07/tanzania-tax-update-finance-act-2024
  4. bowmanslaw.com/insights/tanzania-courts-decision-on-virtual-assets/
  5. aln.africa/wp-content/uploads/2025/03/The-Yellow-Card-Precedent-A-Catalyst-for-T
  6. bentsienchill.com/virtual-assets-regulation-in-east-and-west-africa-a-regional-comparat
  7. tanzaniainvest.com/cryptocurrencies
  8. pwc.co.tz/assets/pdf/pwc-tanzania-finance-act-update-2024.pdf
  9. polity.org.za/article/virtual-assets-regulation-in-east-and-west-africa-a-regional-
  10. pwc.co.tz/press-room/navigating-uncharted-territory.html

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Orientation, not legal advice: verify against the primary sources linked above. Last verified 24 May 2026. Methodology & how to cite · State of Technology Regulation 2026