THE REGULATION OF CRYPTOCURRENCY IN TANZANIA: AN ANALYSIS OF COMPLIANCE OF THE LEGAL REGIME WITH INTERNATIONAL LAW

Abstract

The regulation of cryptocurrency presents a major challenge to financial governance in emerging economies such as Tanzania. The rapid growth of virtual assets, their decentralized nature, and potential for anonymity have raised significant concerns regarding money laundering, terrorist financing, and consumer protection. Internationally, the Financial Action Task Force (FATF) has established standards that require member states to regulate Virtual Asset Service Providers (VASPs) through licensing, supervision, and compliance with Anti–Money Laundering and Counter–Terrorist Financing (AML/CFT) measures. This article critically analyses the Tanzanian legal and institutional framework governing cryptocurrency in light of these international standards. It argues that although Tanzania has made preliminary steps such as recognizing digital assets under the Finance Act, 2024 and issuing public notices through the Bank of Tanzania there remains a significant regulatory gap in achieving full FATF compliance. The study concludes that comprehensive legislation is required to address the legal status of virtual assets, enhance regulatory oversight, and foster a balance between innovation and financial integrity.