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Egypt's Central Bank Issues Crypto Regulations, Violators At Risk Of Imprisonment

Navigasi - The Central Bank of Egypt (CBE) has issued a new warning about cryptocurrencies, violators could get jail terms. Egypt's central bank laws prohibit issuing, trading or promoting cryptocurrencies, creating or operating platforms to trade them, or carrying out related activities.

Egypt's Central Bank Issues Crypto Regulations, Violators At Risk Of Imprisonment
Egypt's Central Bank Issues Crypto Regulations, Violators At Risk Of Imprisonment


Citing Bitcoin, the Central Bank of Egypt (CBE) has updated its warning on all types of cryptocurrencies, citing a number of risks, including high volatility, use in financial crimes and electronic piracy, the Egypt Independent reported on Tuesday.

The Egyptian central bank also stressed that crypto is not issued or endorsed by the central bank or other official authorities.

“In the same context, the Egyptian Central Bank and Banking System Act promulgated by Law no. 194 of 2020 prohibits the issuance, trading or promotion of cryptocurrencies, creating or operating platforms for trading them, or conducting related activities," the CBE statement said.

According to the CBE, anyone who violates this will be jailed, and fined not less than one million pounds and no more than LE10 million (USD 516,340), or one of these two sentences.

“It is noteworthy that cryptocurrencies are not issued by any central bank, or any official central issuing authority that can be held accountable,” he said.

Moreover, cryptocurrencies are not backed by any tangible assets and are not supervised by any regulator around the world, and as a result, they lack the official government guarantees and backing that other official currencies issued by central banks enjoy.

Egypt's Dar El-Ifta, the government's main Islamic agency for issuing fatwas (religious opinions), issued a decree in January 2018, declaring any and all use of cryptocurrencies unlawful, or prohibited, including buying, selling and leasing.
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