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Luxembourg vs Tanzania

Crypto regulation comparison

← Back to map | Luxembourg | Tanzania
Luxembourg

Luxembourg

Tanzania

Tanzania

Legal
Partially Regulated

Luxembourg is a major European hub for crypto and blockchain financial services. The CSSF regulates VASPs and crypto-related investment funds. Crypto held for more than 6 months is generally exempt from capital gains tax for individuals, making it attractive for long-term holders. Luxembourg hosts several prominent crypto exchanges and fund administrators.

Tanzania's regulatory stance on crypto is evolving. The Bank of Tanzania warned against crypto in 2019, but the 2024 Finance Act introduced a 3% withholding tax on digital asset transactions — Tanzania's first legal recognition of crypto. A December 2024 High Court ruling held that taxed crypto transactions cannot be deemed unlawful. No comprehensive regulatory framework exists yet.

Tax Type Capital gains
Tax Type Income
Tax Rate 0-42%
Tax Rate 3% withholding tax
Exchanges Yes Yes
Exchanges Yes Yes
Mining Yes Yes
Mining No No
Regulator CSSF (Commission de Surveillance du Secteur Financier)
Regulator Bank of Tanzania
Stablecoin Rules Regulated under EU MiCA framework; Luxembourg hosts major stablecoin issuers
Stablecoin Rules No stablecoin regulation
Key Points
  • CSSF oversees VASPs under the Luxembourg AML/CFT framework
  • Individuals holding crypto for 6+ months are generally exempt from capital gains tax
  • Short-term gains taxed at progressive income tax rates up to 42%
  • Major hub for crypto investment funds and blockchain companies
  • MiCA framework fully applicable from December 2024
Key Points
  • Bank of Tanzania warned against crypto trading in 2019 public notice
  • Finance Act 2024 introduced 3% withholding tax on digital asset transactions
  • December 2024 High Court ruled taxed crypto transactions are not unlawful
  • An estimated 2.3 million Tanzanians own cryptocurrency
  • Bank of Tanzania exploring central bank digital currency (CBDC)
Sources
Sources