The Central Bank of Egypt (CBE) has yet again warned violators of its cryptocurrency rule of impending imprisonment if indicated.
The laws of the CBE prohibit the issuance, promotion, operation, or transactions in cryptocurrency.
The CBE legislation states that it “prohibits issuing, trading, or promoting cryptocurrencies, creating or operating platforms for trading it, or carrying out related activities.”
In the recent warning, the CBE identified the high volatility of cryptocurrencies, their use in financial crimes, as well as e-piracy as reasons for its continued stance against cryptocurrencies.
“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,
“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,”
“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 CBE said in a statement.
Cryptocurrencies in Egypt are not issued by any central bank or any official central issuing authority that can be held accountable.
Egypt’s Dar El-Ifta, a division of the country’s ministry of justice which provides rulings on contemporary issues based on Islamic rules in 2018 declared prohibited cryptocurrency in the country.
Based on that ruling, the Dark El-Ifta had named some reasons including money laundering and terrorism financing, as some of its reasons for issuing the prohibition.