The Central Bank of Egypt (CBE) is following up the phenomenon of cryptocurrency trading through some regional and international platforms, which have been significantly promoted recently, the CBE announced.
The Central Bank of Egypt warned that whoever violates the decision of crypto trading ban may be punished with a fine of up to LE10 million.
In a statement, the Central Bank of Egypt renewed its warning against dealing with all types of encrypted virtual currencies, because of its high risks, including its significantly fluctuating value and its use in financial crimes and e-piracy, in addition to that it’s not issued by the Central Bank or any official central issuing authority that can be referred to, and therefore it lacks any material cover to ensure the stability of the currency and protect the rights of its dealers.
“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, or one of these two penalties,” the statement read.
The Central Bank concluded the statement, stressing that dealings in Egypt are limited to the official currencies approved by the Central Bank of Egypt only, appealing to dealers in the Egyptian market to be very careful, and not to engage in dealing with those high-risk currencies.