The Bank of Tanzania’s fintech regulatory sandbox will begin receiving applications on January 2, 2025, the bank says.
“In accordance with the Bank of Tanzania (Fintech Regulatory Sandbox) Regulations, 2024. (Regulation), which requires the submission of applications on a quarterly basis, the Bank announces that applications for participation in the Sandbox will be open quarterly, starting from January 2025.
The first application window for 2025 will be open from 2 to 22January 2025, 2025.”
– Bank of Tanzania (BoT)
According to BoT, it developed the sandbox to create a controlled environment through a test and learn approach to test financial products and services that are not yet fully covered by existing regulatory frameworks under the mandate of BOT.
The bank highlights its role in promoting innovation and protecting consumers. In 2019, the bank issued an opinion to members of the public participating in cryptocurrency transactions, as such transactions are not regulated by the umbrella bank.
Central Bank of Tanzania issues public notice warning against cryptocurrency tradinghttps://t.co/QTEHTxr2Pa
–Emmanuel Tayari (@mtanzania) November 12, 2019
However, in June 2021, President Samia Suluhu Hassan asked the country’s financial authorities to “lean in” to cryptocurrencies so that the country is not left behind.
Tanzanian President urges Central Bank of Tanzania to prepare and start looking into cryptocurrencies https://t.co/GYcikSfJyG via @Bitcoin KE @ScottMorrisonMP @tnatw
– Poppy Masselos (@poppymasselos) June 14, 2021
Four years later, the Bank of Tanzania progress announced on central bank digital currency (CBDC).
For the private sector, the sandbox, launched in September 2024, is expected to greatly improve the fintech sector, which represents 8.83% of the 842 startups in Tanzania and generates approximately 9,888 jobs.
LAUNCH (TECHNICAL) | Bank of Tanzania Launches Fintech Regulatory Sandbox: In a landmark initiative to support fintech innovation, the Bank of Tanzania has officially launched its Fintech Regulatory System. https://t.co/ZeEaNrCjed via @BitcoinKE
– Best Kenyan Blogs (@Blogs_Kenya) September 5, 2024
It aims to alleviate the extensive and costly regulatory requirements that many fintech startups face, particularly before achieving product-market fit.
It provides real-time performance monitoring, risk assessment and feedback ensuring startups comply with regulatory standards before a full market launch.
Applications will be assessed based on regulatory criteria, with responses provided within 30 working days of the application window closing.
See also
Interested parties can submit their requests on the bank’s website Fintech Regulatory Sandbox Application Portal.
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