The Central Bank of Egypt (CBE) has once again warned against the use of cryptocurrencies, noting that offenders risk jail time. According to the law of the Egyptian central bank, it is unlawful to “issue, trade, or promote cryptocurrencies, create or operate platforms for their trading, or engage in related activities.”
According to Tuesday’s report by Egypt Independent, the Central Bank of Egypt (CBE) has reissued its cautionary statement regarding all forms of cryptocurrencies, citing a number of risks including high volatility, use in financial crimes, and e-piracy. The ECB emphasized that neither the central bank nor any other official authority issues nor backs cryptocurrency.
The Central Bank of Egypt (CBE) statement reads: “In the same context, the Law of the Central Bank of Egypt and the Banking System — promulgated by Law No. 194 of 2020 — prohibits issuing, trading, or promoting cryptocurrencies, creating or operating platforms for trading it, or carrying out related activities.”
Whoever violates this shall be imprisoned, and fined no less than one million pounds and no more than LE10 million [$516,340], or one of these two penalties.
The Egyptian central bank issued a similar warning about cryptocurrencies in January 2018, specifically naming bitcoin, stating:
It is worthy to note that cryptocurrencies are not issued by any central bank, or any official central issuing authority that can be held accountable.
The central bank continued, “Additionally, cryptocurrencies lack the official governmental guarantee and support enjoyed by the other official currencies issued by central banks because they are not backed by any physical assets and are not under the supervision of any regulators worldwide.
In January 2018, Egypt’s Dar El-Ifta, the government’s main Islamic institution for issuing fatwas (religious opinions), issued an edict declaring that all uses of cryptocurrencies, including buying, selling, and leasing, were arm, or forbidden.