Bank of Tanzania’s fintech regulatory sandbox will begin receiving applications on January 2 2025, the bank says.
“In line with the Bank of Tanzania (Fintech Regulatory Sandbox) Regulations, 2024 (Regulations), which require applications to be submitted on a quarterly basis, the Bank hereby announces that applications for participation in the Sandbox will open quarterly, beginning January 2025.
The first application window for 2025 will be open from 2nd to 22nd January, 2025.”
– Bank of Tanzania (BoT)
According to BoT, it has developed the sandbox for creating a controlled environment through a test and learn approach for testing financial products and services that are not yet fully covered by existing regulatory frameworks under the BOT mandate.
The bank notes its roles in enabling innovation and protecting consumers. In 2019, the bank issued a notice to members of the public engaging in cryptocurrency operations due to such operations not being regulated by the apex bank.
The Central Bank of Tanzania Puts Out a Public Notice Warning Against Dealing in Cryptocurrencieshttps://t.co/QTEHTxr2Pa
— Emmanuel Tayari (@mtanzania) November 12, 2019
However, in June 2021, President Samia Suluhu Hassan asked the financial authorities in the country to ‘look into’ cryptocurrencies so that the country is not left behind.
The President of Tanzania Urges the 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 announced progress on Central Bank Digital Currency (CBDC).
For the private sector, the sandbox, launched in September 2024, is expected to greatly enhance the fintech sector, which comprises 8.83% of the 842 startups in Tanzania and contributes approximately 9,888 jobs.
[TECH] LAUNCH | Bank of Tanzania Launches the Fintech Regulatory Sandbox: In a landmark move to support financial technology innovation, the Bank of Tanzania has officially launched its Fintech Regulatory Sa.. https://t.co/ZeEaNrCjed via @BitcoinKE
— Top Kenyan Blogs (@Blogs_Kenya) September 5, 2024
It aims to alleviate the extensive and costly regulatory requirements that many fintech startups face, particularly before they achieve product-market fit.
It provides real-time performance monitoring, risk evaluation, and feedback ensuring that startups comply with regulatory standards before a full market launch.
Applications will be evaluated based on regulatory criteria, with responses provided within 30 working days after the application window closes.
Concerned parties can make their applications on the bank’s Fintech Regulatory Sandbox Application Portal.
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