CBE, the Central Bank of Egypt has issued another warning regarding cryptocurrency. It warned that anyone who violates this law could be subject to imprisonment. The Egyptian central bank’s law “prohibits issuing, trading, or promoting cryptocurrencies, creating or operating platforms for trading it, or carrying out related activities.”
Crypto Warning Issued by Egypt’s Central Bank
Egypt Independent reports Tuesday that the Central Bank of Egypt has reiterated its concern about all types of cryptocurrency. They cited a variety of risks including high volatility and use in financial crime. The ECB stressed that cryptocurrency is neither issued nor backed by any central bank, or other government authority.
“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,” the CBE statement reads, adding:
Anyone who violates these rules will be sentenced to imprisonment, fined not less than a million pounds and not greater than LE10million [$516,340]You can choose to pay one or both of the above penalties.
A similar alert was issued by the Egyptian central banking in January 2018 regarding cryptocurrency. It specifically named bitcoin.
Not all central banks or official central issuing authorities can issue cryptocurrencies. This is important to remember.
“Moreover, cryptocurrencies are not backed by any tangible assets and are not supervised by any regulators worldwide, and consequently, they lack the official governmental guarantee and support enjoyed by the other official currencies issued by central banks,” the central bank added.
Egypt’s Dar El-Ifta, the government’s principal Islamic institution for issuing fatwas (religious opinions), issued an edict in January 2018, declaring that any and all uses of cryptocurrency were ḥarām, or forbidden — including purchasing, selling, and leasing.
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