How to Buy Cryptocurrency in Tanzania

Buying cryptocurrency in Tanzania

Buying cryptocurrency in TanzaniaIn November of 2019, the Bank of Tanzania (BoT) issued a statement regarding cryptocurrency. The bank stated that marketing, trading or using these virtual currencies doesn’t comply with existing foreign exchange regulations. With this statement, the bank recognized the growing interest in Bitcoin in Tanzania, and felt the need to intervene and address it accordingly. The BoT also emphasized the fact that the only acceptable and legal tender in the country is the Tanzanian Shilling, therefore, labeling cryptocurrencies as the opposite. Even though the bank’s reasons for banning cryptocurrencies weren’t stated, it is mostly likely due to common concerns. Most banks are concerned about their volatile nature and the fact that they are traded on exchanges which aren’t regulated, so those customers who lose money cannot appeal in court. Furthermore, another concern is the fact that they can be used in illegal and fraudulent activities (money laundering and terrorism financing).
As of 20/03/2021

Exchanges Info

These exchanges all accept customers from Tanzania. While they broadly offer the same services and you can buy cryptocurrency at all of them, there can be differences in transaction fees, security, verification requirements, deposit methods and features, as shown below

Bitfinex

Operating since 2012, Bitfinex has a huge range of coins and trading pairs, a good user interface and low trading fees.

Pros
  • Very low trading fees
  • Large range of coins and trading pairs
  • High liquidity
Cons
  • Slow account verification
  • Two major hacks
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Kucoin

Founded in 2017, KuCoin has already managed to establish itself as “The People’s Exchange.” With 200+ cryptocurrencies and more than 400 markets, it has become one of the hubs for cryptocurrency trading.

Pros
  • Vast selection of altcoins
  • Ability to stake & earn crypto yields
  • Robust security features
  • No forced KYC checks
Cons
  • No fiat currency deposits
  • Trading volume is low

Changelly

Changelly allows you to trade cryptocurrency without registration or verifying the identity through KYC. Being a non-custodial exchange, Changelly doesn’t require you to keep any deposits. The platform also works as a fiat-to-crypto gateway.

Pros
  • Non-custodial exchange
  • Great way to switch altcoins
  • Doesn’t require extensive KYC
  • 2FA security and high exchange limit
Cons
  • A high transaction fee of 0.5%
  • Unclear owners
  • Sometimes their service is quite slow
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Kraken

Kraken has a good reputation for security and protection of your funds and operates across the USA (except NY), Canada, the EU and Japan

Pros
  • It can be used to trade against fiat options
  • Robust security measures
  • Free SEPA deposits in Europe
Cons
  • Not a very beginner-friendly interface.
  • No card deposit options
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