Egypt lifts ban by allowing licensed crypto companies

Under a proposed bill to ban the creation, trading, or promotion of cryptocurrencies without a license, Egypt prohibited all cryptocurrency under Islamic law in 2018. The Grand Mufti of Egypt stated the technology could undermine the legal system via tax evasion, money laundering, and other fraudulent activities, being concerned at the same time with crypto’s volatility and scams.

However, the market has expanded and neighboring countries have begun exploring the technology, which led to the government’s decision to soften its stance. As per the Egypt Independent, the bill would give the board of directors of the Central Bank of Egypt (CBE) the right to regulate cryptocurrencies, as well as require multiple potentially expensive licenses to do business. Moreover, the new law provides legal authority for the electronic authentication of bank transactions, electronic payment orders, and transfer orders. It also provides authority for the electronic settlement of checks, and the issuance and circulation of electronic checks and electronic discount orders.