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FinTechs belonging to this category offer financial services using crypto currencies. This category also includes FinTechs utilising blockchain and distributed ledger technologies (DLT) upon which Bitcoin and Ethereum are based, among others. FinTechs develop and do research in this field in order to create new services – e.g. crypto currency exchange markets, wallet providers, NFTs-related services, new payment services, "smart contracts" or new clearing and settling services.
Introduction
Attitude of the country towards financial services using crypto currencies
The Central Bank (The Bank of Tanzania) issued a public notice in 2019 and this notice made financial services using crypto currencies illegal in Tanzania. To-date, the only legal tender recognised is Tanzania Shillings. Other foreign currencies are traded by licensed institutions in the country in line with foreign exchange regulations where the currencies could be issued and redeemed in the country of issuance as a legal tender.
Legal affairs
Obligations and requirements to provide financial services using crypto currencies described above
Ordinarily, financial services using crypto currencies in the United Republic of Tanzania would be regulated by two institutions, the Bank of Tanzania (the Central Bank) and Tanzania Communications Regulatory Authority (“TCRA”) (that regulates the technology used in the payment platforms).
However, crypto currencies are not regulated as there is no specific law that regulates them in Tanzania.
Additional comments regarding the legal situation for financial services using crypto currencies or what FinTech’s must be aware of in this business area
Public Notice issued in 2019 clearly cautioned anyone to refrain from trading, marketing, or using virtual currency as they were not legally authorised in Tanzania.
Economic conditions
Market size for financial services using crypto currencies and biggest companies in this business area
N/A.
Additional comments regarding the economic situation for financial services using crypto currencies or what FinTech’s must be aware of in this business area
In Tanzania, trading in crypto currencies is illegal as per the Public Notice issued in 2019, clearly cautioning investors to refrain from trading, marketing, or using virtual currency as they were not legally authorised in Tanzania.