Cryptocurrency adoption is growing globally, with Africa emerging as one of the fastest-growing markets. A Chainalysis report from October 2023 indicates that although Sub-Saharan Africa has consistently been one of the smallest cryptocurrency markets, crypto has penetrated key populations and become an important part of daily transactions.
In Tanzania, cryptocurrencies remain unregulated and are not recognised as legal tender. The Bank of Tanzania (BoT), which oversees all monetary and fiscal policies in the country, has issued several notices clarifying that only Tanzanian Shillings, in the form of notes and coins, are recognised as the sole legal tender for transactions in Tanzania. In November 2019, the BoT issued a notice reminding the general public that the trading, marketing, and use of virtual currencies contravene existing foreign exchange laws. Despite this, reports suggest that cryptocurrency transactions are increasing.
This insight examines the recent High Court (Commercial Division) decision in Yellow Card Tanzania Ltd v. Nyamwero Michael Nyamwero, Case No. 12171 of 2024 (the Yellow Card Precedent) and explores its implications for the development of Tanzania’s cryptocurrency legal framework, as well as potential future considerations for individuals and businesses engaged in cryptocurrency transactions.
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