An In-Depth Examination of the Current Legal Status of Cryptocurrency in Egypt

Since 2018, Egypt’s Central Bank (CBE) has not recognized cryptocurrencies as legal tender and has repeatedly warned the public of their high risks. That same year, Egypt’s Dar al-Ifta issued a fatwā declaring commercial transactions in Bitcoin and other cryptocurrencies as haram under Islamic law, citing threats to national security and financial stability (2).

In 2020, Egypt enacted the Central Bank and Banking Sector Law No. 194. Article 206 of this law explicitly prohibits the issuance, promotion, or trading of cryptocurrencies without prior approval from the CBE, with violators subject to severe penalties (1).

"Cryptocurrency-based business and trading remain prohibited and restricted in Egypt. The Banking Law No. 194 of 2020 prohibits issuing, promoting or trading in cryptocurrencies unless prior CBE approval is obtained, with violators facing imprisonment and/or fines between EGP 1 million and EGP 10 million." (1)

Although the CBE announced in 2019 that it was drafting licensing requirements for crypto activities, no such framework has been issued to date. As a result, Egyptians trading on unlicensed international platforms expose themselves to legal action and financial loss (2).

Despite growing global adoption, Egypt’s regulatory environment remains firmly restrictive. Only digital finance initiatives explicitly approved and licensed by the CBE may operate legally, and any unauthorized involvement in cryptocurrencies carries significant legal and financial consequences (1).

Source:
https://iclg.com/practice-areas/fintech-laws-and-regulations/egypt
https://freemanlaw.com/cryptocurrency/egypt/

Last updated: 16-05-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.