In a recent statement, the Central Bank of Egypt (CBE) warned against transacting in cryptocurrencies through local or international marketplaces. A statement released by the CBE on Tuesday says that virtual currencies aren’t considered legal currency since the Central Bank does not issue them. The CBE provided a warning against creating cryptocurrencies or trading in cryptocurrencies in accordance with the Central Bank and Banking System Law.
A Look-Back
Cryptocurrencies such as bitcoin and other cryptocurrencies have been advised not to be traded by the CBE since 2017. There have been arrests by Egyptian security forces of bitcoin dealers who are mining cryptocurrencies illegally.
Egypt fining people because they’re trading in crypto is just a way to increase immigration.
Fkn doomed…
— Sara (@soybartousha) September 13, 2022
As a result of their volatile value and use in financial crimes and e-piracy, encrypted virtual currencies present high risks, according to the Central Bank of Egypt. Moreover, they are not issued by the Central Bank or any official central issuing authority, which means they lack any material protection for the stability and rights of the currency.
Chainalysis doesn't rank Egypt very high according to multiple adoption metrics in their "crypto adoption index".
— Lyn Alden (@LynAldenContact) September 10, 2022
In January 2018, The Dar El-Ifta religious edict-issuing body in Egypt prohibited cryptocurrency trading by issuing an injunction. According to Dar El-Ifta, virtual currencies are prohibited since reputable organizations do not consider them to be an “acceptable interface of trade.”
According to Law No. 194 of 2020, it is illegal to issue, trade, promote, and develop cryptocurrencies and run or develop trading platforms. In the event that this is breached, the violator will be imprisoned and punished between one million and ten million pounds, or a combination of the two. As a result, the Central Bank of Egypt urged dealers in the Egyptian market to remain cautious and avoid dealing with high-risk foreign currencies.
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