Legal Crypto In Tanzania

Crypto in Tanzania: An Overview of the Legal Environment, Market Dynamics and Emerging Trends

Cryptocurrency has become a revolutionary factor in worldwide finance, but the adoption and regulation of it is widely different from country to country. The status of cryptocurrencies and the development of DeFi and NFT markets in Tanzania is a mixture of legal grey areas and evolving developments. In this report, we will look at the legality of cryptocurrencies in Tanzania, the regulatory landscape, how to buy and trade digital assets, and the status of DeFi and NFT in the market.

Is Cryptocurrency Legal in Tanzania?

The legality of cryptocurrencies in Tanzania is not yet established, and there is no regulatory structure for digital currencies. In November 2019, the Bank of Tanzania (BoT) published a public notice advising the public that cryptocurrencies were not accepted as legal tender in Tanzania and that the BoT had not licensed any entity to provide cryptocurrencies in Tanzania, warning about the risks of investing in them, including price volatility and fraud. By 2025, a Tanzanian court held that conducting electronic transactions involving cryptocurrencies is not a criminal offense, thus implying that purchasing of cryptocurrencies does not per se contravene extant laws.

Regulatory Framework

There are no existing cryptocurrency laws in Tanzania. Current legislation — such as the Bank of Tanzania Act 2006 and the National Payment Systems Act 2015 — do not make reference to digital currencies. The BoT has announced that it is currently in the process of conducting research into cryptocurrencies and there will be regulations, but it’s not clear when these will take effect.

The Most Popular Exchanges and Methods of Trading

Cryptocurrency in Tanzania is traded on foreign exchanges and via peer-to-peer (P2P) platforms, as there are no exchanges that are licensed within the country. International popular exchanges you can make use of as a Tanzanian is Binance, Coinbase and Kraken that do provide easy to use interfaces along with many crypto support. P2P platforms (such as LocalBitcoins or Paxful) allow buyers and sellers to trade directly, often leveraging mobile money (e.g., M-Pesa, popular in Tanzania).

DeFi Market

DeFi is still nascent in Tanzania, and its growth is hampered by low rates of internet penetration, low financial literacy and regulatory unknowables. DeFi applications, which allow users to lend, borrow and trade with one another without intermediaries, are based on blockchain technology such as Ethereum. In Tanzania, adoption is low with tech literate local tech natives willing to participate DeFi protocols like Uniswap or Aave.

NFT Market

The NFT market in Tanzania is also muted. NFTs, or nonfungible tokens — unique digital assets that are one of a kind and can be bought and sold on blockchain platforms — have taken the world by storm for art, collectibles and virtual real estate. Awareness around NFTs in Tanzania is minimal and only a niche group of creators and techies are involved in it.

Taxation Challenges

A major issue that features prominently in Tanzania’s crypto scene is the struggle against taxation. The Tanzanian tax authorities, the Tanzania Revenue Authority (TRA) to date have not issued any specific guidelines on how transactions in cryptocurrency should be taxed, leaving an air of uncertainty among users.

Financial Inclusion Potential

Tanzania’s population is largely unbanked, and many of its people use mobile money such as M-Pesa. Cryptocurrencies, including fiat-collateralized stablecoins, could serve as a substitute for savings, remittances and cross-border transactions, evading conventional barriers to banking.

Things to Know About Cryptocurrency in Tanzania

• Mobile Money: More than 60% of all cryptocurrency transactions in Tanzania are executed through mobile money, such as M-Pesa or Airtel Money.
• Internet Penetration: Internet penetration is still relatively low at 43% in 2025, meaning that cryptocurrency is still inaccessible to majority of the population.
• Youth Involvement: The 18–35 segment of the population is the biggest user of cryptocurrency in Tanzania.
• Remittances: Cryptocurrency might eight to ten percent average for traditional remittance channels can be lowered using cryptocurrency.
• Education in Blockchain: Local universities, for example University of Dar es Salaam have already started providing blockchain course.

Cryptocurrency Market Overview

Aspect	Details
Legal Status	Not illegal but unregulated; not recognized as legal tender.
Regulatory Body	Bank of Tanzania (BoT); no specific crypto regulations as of 2025.
Popular Platforms	Binance, Coinbase, Paxful, LocalBitcoins.
DeFi Adoption	Low; limited to tech enthusiasts due to infrastructure and awareness gaps.
NFT Activity	Minimal; emerging interest among artists but constrained by costs.
Tax Policy	No specific cryptocurrency tax guidelines; potential capital gains tax.
Market Risks	Fraud, volatility, and lack of consumer protection due to no regulation.

Conclusion

Tanzania’s crypto sector is characterized by regulatory uncertainty, an embryonic market and enormous promise. The legal status of cryptocurrency trading may not be illegal, but the lack of regulation certainly makes both users and businesses worry. Exposure is made available through the likes of P2P trading and global exchanges, but access to DeFi and NFT hashboarding is still weak in the face of structural limitations and regulatory uncertainty.