Bank of Tanzania Targets Crypto as Governor Warns of Terror Finance Risks

The Bank of Tanzania is reportedly finalizing a new regulatory framework to oversee cryptocurrencies and stablecoins, as Governor Emmanuel Tutuba warned of the risks associated with digital assets, including money laundering and terrorist financing.

Speaking during a visit to the central bank’s pavilion at the 50th Dar es Salaam International Trade Fair, Tutuba said the institution is preparing laws and regulations to guide the supervision of virtual assets amid rising public interest, especially among young investors.

“We are currently finalizing 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,” he said.

The governor noted that the central bank has received complaints from individuals who lost money in cryptocurrency-related transactions, underscoring the need for stronger consumer protection. “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 added.

Tutuba also emphasized that the regulations would address risks tied to illicit activities. “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.

The move aligns Tanzania with other nations seeking to manage digital finance risks while supporting innovation. The Bank of Tanzania has expanded oversight of digital financial services in recent years as electronic payments and financial technology grow. Tutuba said the upcoming rules will help the central bank supervise digital asset activity more effectively while maintaining financial stability and safeguarding consumers.

During his visit, he toured digital financial services showcased at the central bank’s pavilion and said public exhibitions such as the trade fair help improve financial literacy and raise awareness of emerging financial technologies.

Source: https://news.bitcoin.com/bank-of-tanzania-targets-crypto-as-governor-warns-of-terror-finance-risks/