Wanted: Law to govern cryptocurrency industry

22Oct 2019
The Guardian Reporter
Dar es Salaam
The Guardian
Wanted: Law to govern cryptocurrency industry

THE government has been advised to come up with a friendly law that will make it collect taxes from the growing cryptocurrency industry.

A cryptocurrency (or crypto currency) is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets.

Chief executive officer of Addscoin Tanzania, Japhet Birunda made the call when speaking to journalists in Dar es Salaam yesterday. 

According to Birunda, there are more than one billion transactions of cryptocurrencies in Tanzania, most of which are not taxed, “that’s why we say it’s important for the government to regulate this sector, s o that it contribute positively to the country’s industrialization agenda.” 

He described cryptocurrency as a digital currency that uses cryptography for security and one of currencies is bitcoin.

“The government needs to give this area with serious eye by regulating it and make it contribute to the country’s socio-economic development,” he said, adding:

“We’ve submitted proposals to the government on how this sector be regulated. We want laws on the industry to be friendly so that the sector grows for the benefit of our country.”

He further said: “We’re a registered firm dealing with block chain technology and digital currencies and one of our roles is to ensure that all stakeholders pay government taxes. 

“We also have a project that provides education on block chain technology, which can help to propel country’s industrialization drive as well as encouraging people to invest in incentive research Africa (IRA), where payments are done in diligence currency.”

An expert on the IMF's External Advisory Group is quoted in the article as saying that a digital currency could "speed" economic growth. This is because it would prevent countries from hoarding physical currency to maintain reserves.

Birunda said that his firm next Saturday will launch exchanger platform wallet called “sell bitcoin wallet” that will encourage more people to chip in and invest in the new technology.

On same day, the firm will launch tree planting campaign across the country. The campaign is dubbed: ‘Green care for future life’, which is aimed at encouraging people to plant trees in their localities and open spaces to avert climate change and desertification.

In the tree planting campaign that will be supported by Block Chain, Addscoin Tanzania will work in collaboration with different players including Wetaaifico Institute of Technology and Development College (WITDC).