Egypt

{
  "analysis_text": "The regulatory status of cryptocurrency in Egypt is characterized by a strict statutory ban on unlicensed activities, which, in the absence of any issued licenses, functions as a total prohibition. The primary legal instrument is the Central Bank and Banking System Law No. 194 of 2020. Article 206 of this law unequivocally states that \u0027issuing, trading, promoting, or creating or operating platforms for trading cryptocurrencies or electronic money\u0027 is prohibited without obtaining a license from the Central Bank of Egypt (CBE). To date, the CBE has not granted a single license, rendering all crypto-related activities within the country illegal by default.\n\nThe penalties for violating this ban are severe. Article 225 of the same law stipulates that violators face imprisonment and/or a fine ranging from 1,000,000 to 10,000,000 Egyptian Pounds. This legal framework replaced earlier, more ambiguous warnings, solidifying the state\u0027s zero-tolerance approach. The government\u0027s rationale cites high volatility, the use of crypto in financial crimes, and the lack of a central issuer as primary risks to the national financial system.\n\nBeyond the civil law, the religious landscape plays a significant role in Egypt\u0027s regulatory environment. Dar al-Ifta, the country\u0027s primary Islamic advisory body, issued a Fatwa in 2018 declaring Bitcoin and similar currencies \u0027Haram\u0027 (forbidden). The Grand Mufti cited the lack of central regulation and the potential for fraud as reasons for the prohibition. This religious decree reinforces the state\u0027s legal ban and discourages the public from engaging with digital assets.\n\nEnforcement is active and visible. In March 2023, Egyptian authorities arrested 29 individuals involved in the \u0027HoggPool\u0027 crypto scam, which defrauded thousands of investors. The Ministry of Interior frequently conducts raids and arrests individuals for \u0027trading in cryptocurrencies\u0027 or \u0027mining\u0027 without authorization. While the law technically leaves a door open for regulation via licensing, the CBE\u0027s consistent refusal to issue licenses and its repeated public warnings confirm that Egypt remains a \u0027Banned\u0027 jurisdiction for retail crypto trading.",
  "confidence_level": "High",
  "executive_summary": "Retail cryptocurrency trading is effectively illegal in Egypt. While the Central Bank and Banking System Law No. 194 of 2020 theoretically allows for crypto activities if licensed, the Central Bank of Egypt (CBE) has refused to issue any such licenses to date. Consequently, all unauthorized issuance, trading, and promotion of cryptocurrencies are criminal offenses punishable by imprisonment and severe fines.",
  "grounding_urls": [
    {
      "resolved_url": "https://www.lightspark.com/knowledge/is-crypto-legal-in-egypt",
      "title": "lightspark.com",
      "url": "https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQHMjadL1UTX8gEkuHVFN6Bvk3gdQtPpJONBO6MU8UoyWWNFjigPYFbMWIk_lxkDAjW5ZqqTdRx7bWkLSy5dVYNHlLFwcL_1fy-UVwEFsO6U-v5EvWSvwLeskcuuQ-3vSF3GeeXYRjXMBEt-QS2fF_BTTwIOoMkV-Ig="
    },
    {
      "resolved_url": "https://www.cbe.org.eg/en/news-publications/news/2023/03/08/warning-statement",
      "title": "cbe.org.eg",
      "url": "https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQFWq-FDphCyWPAnZzvxh0mARCQLcf3fzGkkAIXy0j09aUgVoREgYAPs4VxQyFjHajrZ7WrnxtzKlhJLESWtuhr1J0DZOwHSqvr5lJBJgn--EndjM8TDFowF-kUNXgzaeSldOdeWQxwUPwiPmerlGiAYKmCzlfasZwS2dTXNKCUk7RyB1TXMYTjH"
    },
    {
      "resolved_url": "https://www.lexismiddleeast.com/eJournal/2025-05-29_25",
      "title": "lexismiddleeast.com",
      "url": "https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQF9sKcqnS79CNp8_rYKB9780inc-kxbylB4bpwCq_zBJ1YD4qQMZvVd59kh8E0nykZFEcg5LEWurrk-ZQHhOxk_oVuExHIbDkOi-L7xIO0A6xp5UVgKkGh0eJ9aRWTy_qXdrTxJ5a-szLsonobK_AccBw=="
    },
    {
      "resolved_url": "https://eg.andersen.com/legality-cryptocurrency-in-egypt/",
      "title": "andersen.com",
      "url": "https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQEWgB0CFw6nZ067ckfX6MUSE2lxXMHnUCC8SO3OxD7zhso-_z0U0DYUx4AHEdaVktH6BV9UcfQ4uHIkyyi0OmGhCmsRLVv4UrTxAnDpEh1_i0hCxX_HOEFLf7oxBO4WC-EIqkFMgOotpnYfxgYbj_-mxDYBBw=="
    },
    {
      "resolved_url": "https://iclg.com/practice-areas/fintech-laws-and-regulations/egypt",
      "title": "iclg.com",
      "url": "https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQGZlcerKaCbfjIBxjrIQYHQBSnyou5K-2P5fSSKxZpczz141GnFthgE8tJSlBQ0vejke3fta2nsg7JGRyiZzmtLcs3IbrvSVSVhId08B-259lEUoC4rHVwhEagAe9P7PV_44H0v_rLTL2ihzNIXgC2W7wNgeCA7FQxOBiAQsQ=="
    },
    {
      "resolved_url": "https://www.binance.com/en/square/post/18506204354113",
      "title": "binance.com",
      "url": "https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQFKVcoOfHBlvsOcU5Yc7N_hc_HMkMM9wptCwq53pfLowD0y0yCc8L2kXq9zmYBTW21zEHL_TfysK-1rPyec_dbtkpChWNTso8n09ROvcrjJ4o_kQVWduse276Zpzhzi1XsEJuKc7ye402go9cnS1X6b"
    },
    {
      "resolved_url": "https://www.cbe.org.eg/en/financial-stability/licensing",
      "title": "cbe.org.eg",
      "url": "https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQFHtusC3cDCsx1HWgUUe990ZoOx4RZjWw1HZ_hnXL6N258p0fFNvF1s2hY1Fvx-20yYowU_BgurOcVcO6dw359SfBhdk3rZ4Bf265GRMByTwqtC0c19RwsdwUi-Oa6PS8jESB8ddx-pscXLda1EpfUkLps="
    },
    {
      "resolved_url": "https://islamiclaw.blog/2022/05/05/fatwas-on-cryptocurrency-egypts-dar-al-ifta%CA%BE/",
      "title": "islamiclaw.blog",
      "url": "https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQG_TW_m7how10Y02j_Ky72HJr5INNK3IAACy3mdIN-ljizOP1Nlr0egcUoQzvazyCRpRCGr0wfjEgko4vq29TrpaZsgiqOezt0GNA6cQZusWlYG-js2zRnumHOZ01GvNA3Wq4fjETHtfv077PdnzBV1_5Zc9JJ-kerubmumqxg7BUdaNfx2CTnsR2ELuoNPUMU="
    },
    {
      "resolved_url": "https://www.cbsnews.com/news/egypt-crypto-investment-scam-hoggpool-arrests/",
      "title": "cbsnews.com",
      "url": "https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQGKN2lPzbJgLVWr6mTZrRG8SKs3taK-OVs60Mz5dfgEj9E4wNKJkyXl0YZufrUY4onG_U2DrlMKPrjr5gEFDOXx5JTRL7BT8SkRLsHvq6WDjBnH4nWOVOco-19Lk01SnpOKzwf1mufh-effL4O2h4y7tyqTJp7kzDrJGd_IeeA_lcrqA98aBQ=="
    }
  ],
  "status": "Banned",
  "structured_data": {
    "confidence_level": "High",
    "detailed_analysis": "The regulatory status of cryptocurrency in Egypt is characterized by a strict statutory ban on unlicensed activities, which, in the absence of any issued licenses, functions as a total prohibition. The primary legal instrument is the Central Bank and Banking System Law No. 194 of 2020. Article 206 of this law unequivocally states that \u0027issuing, trading, promoting, or creating or operating platforms for trading cryptocurrencies or electronic money\u0027 is prohibited without obtaining a license from the Central Bank of Egypt (CBE). To date, the CBE has not granted a single license, rendering all crypto-related activities within the country illegal by default.\n\nThe penalties for violating this ban are severe. Article 225 of the same law stipulates that violators face imprisonment and/or a fine ranging from 1,000,000 to 10,000,000 Egyptian Pounds. This legal framework replaced earlier, more ambiguous warnings, solidifying the state\u0027s zero-tolerance approach. The government\u0027s rationale cites high volatility, the use of crypto in financial crimes, and the lack of a central issuer as primary risks to the national financial system.\n\nBeyond the civil law, the religious landscape plays a significant role in Egypt\u0027s regulatory environment. Dar al-Ifta, the country\u0027s primary Islamic advisory body, issued a Fatwa in 2018 declaring Bitcoin and similar currencies \u0027Haram\u0027 (forbidden). The Grand Mufti cited the lack of central regulation and the potential for fraud as reasons for the prohibition. This religious decree reinforces the state\u0027s legal ban and discourages the public from engaging with digital assets.\n\nEnforcement is active and visible. In March 2023, Egyptian authorities arrested 29 individuals involved in the \u0027HoggPool\u0027 crypto scam, which defrauded thousands of investors. The Ministry of Interior frequently conducts raids and arrests individuals for \u0027trading in cryptocurrencies\u0027 or \u0027mining\u0027 without authorization. While the law technically leaves a door open for regulation via licensing, the CBE\u0027s consistent refusal to issue licenses and its repeated public warnings confirm that Egypt remains a \u0027Banned\u0027 jurisdiction for retail crypto trading.",
    "executive_summary": "Retail cryptocurrency trading is effectively illegal in Egypt. While the Central Bank and Banking System Law No. 194 of 2020 theoretically allows for crypto activities if licensed, the Central Bank of Egypt (CBE) has refused to issue any such licenses to date. Consequently, all unauthorized issuance, trading, and promotion of cryptocurrencies are criminal offenses punishable by imprisonment and severe fines.",
    "important_considerations": [
      "Criminal Penalties: Trading without a license carries a prison sentence and a fine of no less than 1 million EGP (approx. $20,000 USD) and up to 10 million EGP.",
      "No Licensed Entities: Despite the law providing a licensing framework, the CBE has maintained a complete freeze on issuing licenses, creating a de facto total ban.",
      "Religious Prohibition: The strong stance from Dar al-Ifta adds a social and religious layer of prohibition alongside the legal one.",
      "Active Enforcement: Authorities actively arrest individuals and groups running crypto scams or trading platforms, as seen in the \u0027HoggPool\u0027 case in 2023."
    ],
    "key_regulatory_pillars": [
      "Central Bank of Egypt (CBE) - Primary Regulator",
      "Law No. 194 of 2020 (Banking Law) - Criminalizes unlicensed crypto activities",
      "Dar al-Ifta - Religious authority issuing Fatwas declaring crypto \u0027Haram\u0027",
      "Public Prosecution - Enforces criminal penalties for violators"
    ],
    "landmark_legislation": [
      {
        "date_enacted": "2020-09-15",
        "identifier": "Law No. 194/2020",
        "name": "Central Bank and Banking System Law No. 194 of 2020",
        "summary": "Article 206 explicitly prohibits issuing, trading, promoting, or operating platforms for cryptocurrencies without a license from the CBE. Article 225 establishes penalties including imprisonment and fines up to EGP 10 million for violations.",
        "url": "https://www.cbe.org.eg/en/Pages/Banking-Laws.aspx"
      },
      {
        "date_enacted": "2018-01-01",
        "identifier": "Fatwa No. 4205",
        "name": "Dar al-Ifta Religious Decree (Fatwa)",
        "summary": "The Grand Mufti of Egypt declared cryptocurrency trading \u0027Haram\u0027 (forbidden) under Islamic law due to risks of fraud, lack of central authority, and potential for funding illicit activities.",
        "url": "https://www.dar-alifta.org/"
      },
      {
        "date_enacted": "2023-03-08",
        "identifier": "Circular/Warning Statement",
        "name": "CBE Warning Statement on Cryptocurrencies",
        "summary": "Reiterated that no licenses have ever been issued for crypto activities and warned that dealing in them is a legally criminalized activity punishable by law.",
        "url": "https://www.cbe.org.eg/en/news-publications/news/2023/03/08/09/00/warning-statement-on-cryptocurrencies"
      }
    ],
    "notes_and_comments": "The \u0027Banned\u0027 status is unique in that the law provides a mechanism for legality (licensing) that is intentionally unused by the regulator. This creates a \u0027de facto\u0027 ban backed by \u0027de jure\u0027 criminal penalties for the unlicensed majority.",
    "primary_sources": [
      {
        "date": "2020-09-15",
        "key_quote": "It is prohibited to issue, trade, promote, create or operate platforms for trading cryptocurrencies or electronic money or carry out activities related to them without obtaining a license.",
        "source_type": "law_text",
        "title": "Central Bank and Banking System Law No. 194 of 2020",
        "url": "https://www.cbe.org.eg/en/Pages/Banking-Laws.aspx"
      },
      {
        "date": "2023-03-08",
        "key_quote": "The Central Bank of Egypt emphasizes that no license has ever been issued or granted to engage in such trading activities in the Egyptian market.",
        "source_type": "regulator",
        "title": "CBE Warning Statement on Cryptocurrencies",
        "url": "https://www.cbe.org.eg/en/news-publications/news/2023/03/08/09/00/warning-statement-on-cryptocurrencies"
      }
    ],
    "remaining_uncertainties": [
      "Whether the CBE plans to issue licenses in the future, or if the \u0027licensing\u0027 clause is merely a placeholder.",
      "The exact number of individual retail traders prosecuted versus those running organized scams."
    ],
    "secondary_sources": [
      {
        "date": "2023-03-06",
        "key_quote": "It is illegal to dabble in cryptocurrency in Egypt \u2013 the act may be punishable by prison and a fine of up to $325,000.",
        "source_type": "news",
        "title": "Egypt arrests 29 over alleged online crypto scam",
        "url": "https://www.aljazeera.com/news/2023/3/6/egypt-arrests-dozens-over-alleged-online-crypto-scam"
      },
      {
        "date": "2018-01-01",
        "key_quote": "Egypt\u0027s Grand Mufti, Shawki Allam, confirmed Monday that it is not permissible to trade, purchase or sell \u0027Bitcoin\u0027 currency.",
        "source_type": "analysis",
        "title": "Egypt\u0027s Dar al-Ifta Forbids Bitcoin",
        "url": "https://ijtihadnet.com/egypts-dar-al-ifta-forbids-bitcoin/"
      }
    ],
    "status": "Banned"
  }
}