Bitcoin

Egypt’s financial regulatory authority warns against use of cryptocurrency

Egypt’s financial regulatory authority (FRA) has issued a warning regarding serious risks associated with cryptocurrencies and Initial Coin Offerings (ICOs).

According to FRA’s statement, ICOs are currently vulnerable to misrepresentation, fraud and manipulation. ICOs may also be structured in such a way that they are not subject to supervision by the FRA. In addition, due to their unregulated status and the anonymous nature of the transactions involved, ICOs are attractive for the laundering of money obtained by criminal means.

Crypto trading has been forbidden in the country since 2020. According to Article 206 of the Central Bank and Banking System Law, which entered into force in September 2020, it is prohibited to issue, trade in and promote cryptocurrencies, to establish or operate platforms for its circulation without a license from the Central Bank’s board of directors. Those who violate the provisions of Article 206 are punishable by prison or fines from one to 10 million Egyptian pounds ($52,7746-$527,746).

It is estimated that over 1.7 million people, 1.8% of Egypt’s total population, currently own cryptocurrency.

M. Ali

Daily cryptocurrency trader, miner, technology enthusiast and a full time IT and security consultant. If you have any questions or comments please feel free to email him at nabil@wibbic.com

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