Are you wondering if cryptocurrency is legal in Egypt?
Cryptocurrency is a hot topic right now
Many people are wondering is cryptocurrency legal in Egypt.
It is something that is on the minds of many people but not knowing the answer to the question.
The Egyptian government has taken steps towards regulating bitcoin and other cryptocurrencies, which is why it is important to know if this new technology is legal or not in your particular country.
In this blog post, I will discuss whether or not cryptocurrency is legal in Egypt and what you should do if it isn’t!
Is Cryptocurrency Legal in Egypt?
No, Cryptocurrency is not legal in Egypt.
Egypt is not allowed to use cryptocurrencies such as Bitcoin, for example.
Egypt’s Dar al-Ifta, the country’s primary Islamic advisory body, issued a religious decree in 2018, classifying Bitcoin transactions as “haram,” something prohibited under Islamic law. While not binding, Egypt’s banking laws were tightened in September 2020 to prevent trading or promoting cryptos without a Central Bank license.
The Central Bank of Egypt (CBE) is the only authority responsible for issuing legal rules and regulations on financial transactions within Egyptian borders.
Cryptocurrencies like bitcoin are decentralized digital currencies that fall under the control of no central governing body or bank and are banned from being used in Egypt.
The Egyptian government is trying to prevent the adoption of cryptocurrencies by imposing harsh penalties on those using them.
The punishments for Bitcoin use are up to five years imprisonment or fines between 500,000 EGP and one million EGP.
The central bank of the country sent out a notice warning commercial banks not to use, trade, or process any transactions related to cryptocurrency which has attributes similar to currencies used as tender after an alleged hacking attack took place on Masr International Petroleum Company (Maipco).
The criminalization is not limited to just online activity as there have been
Egypt is one of the countries with a lot is restricted access to cryptocurrency.
However, this is not an obstacle for Egyptians who want to invest in cryptocurrencies associated is the difficulty and risk involved with it.
Pros and cons of using cryptocurrency in Egypt
Pros:
- Stability of cryptocurrency and removal of power from corrupt and volatile governments.
- Transparent, it’s like an open book, theoretically making fraud and tax evasion more difficult.
- No third-party interference, transactions are performed between you and the recipient without the addition of a middleman which ultimately cuts out any added fees.
Cons:
Cryptocurrencies have been known to be less stable than their paper counterparts as they experience natural rises and falls with little to no predicting ability on the part of those who use them as a form of value exchange.
It has been seen that those currencies can lose significant percentage points within a week or even a day with bounds potentially being quite high but also coming down as suddenly as the price is inflated.
In addition to this, cryptocurrencies are very much in their early stages and therefore have a long way to go before they become accepted globally by people of all backgrounds.
The legality of cryptocurrencies varies from one country to the next with some countries outright banning them or others refusing all forms of the transaction using such currencies as a means for payment.
FAQs on Legality of Cryptocurrency in Egypt
Can I Buy and Hold Cryptocurrency in Egypt?
Yes, you can buy and hold cryptocurrency in Egypt, despite the fact that the government recently banned digital currency trading and initial coin offerings.
In Egypt, you can use cryptocurrency.
You can buy goods and services using your digital currency holdings through several online exchanges that support the trading of Egyptian pounds (EGP), like Paxful.
If you want to buy and hold cryptocurrency in Egypt, there are crypto exchanges that support peer to peer (P2P) systems that you can buy from easily, which are:
- Paxful
- CEX.io
- LocalBitcoins
Is Crypto or Bitcoin Mining Legal in Egypt?
No, Bitcoin and Cryptocurrency mining are not legal in Egypt.
The law prohibits companies from engaging in cryptocurrency mining by means of enticing offers such as prizes and bonuses for the purpose of trading with it.
The typical scenario includes the following: a company or group announces an announcement to engage in bitcoin trading, which lures investors who join them without any charge until they realize that the online platform they registered on is non-existent and they either close their accounts or remit unwisely drawn articles without remitting the investment.
Is Coinbase legal in Egypt?
No, Coinbase is not legal in Egypt.
They are not operating with an Egyptian Financial Service grants license, they operate without the required regulatory oversight by the Central Bank of Egypt, and they act as an exchange for Bitcoins which is expressly prohibited under Article 6 of Law no. 108 2018 on cryptocurrency trading facilities.
Egypt may have an excessively cash-based economy, which has led them to restrict the usage of credit cards and other forms of online banking because it’s too easy for people to financially support terrorists or other causes that are considered “illegal” by the law.
The ban on using credit card transactions includes all companies who do business with Egyptian banks.
As a result, Egyptian citizens are unable to use Coinbase since they will no longer be able to fund their account through their bank account.
Is Binance legal in Egypt?
No, Binance is not legal in Egypt.
Binance is currently operating legally all over the world outside of Egypt; though, it doesn’t hurt to do your own research about possible country-specific regulations.
It would be best for Egyptian users wanting to trade cryptocurrencies like Bitcoin and Ethereum through Binance to pursue their crypto trading endeavors on websites that are based out of countries where crypto trading remains unregulated or can still continue to operate legally.
Largely, following these rules will allow Egyptian users of the site more freedom than they would have on Binance, which has implemented some countries’ restrictions already on their site so as not to run afoul with any given country’s regulations.
How can I sell my Bitcoin in Egypt?
In order to sell your Bitcoin in Egypt, you have a few options. You can start by going through a Crypto Exchange, a service that will buy and/or sell bitcoin for an agreed price.
What is the future of cryptocurrencies in Egypt?
Cryptocurrencies in Egypt is still mostly speculation, but with some recent developments, it may become a big player someday.
Cryptocurrency mining firms are very interesting because they can be located anywhere in the world.
The main downside is that you can’t buy cryptocurrencies with Egyptian pounds in most crypto exchanges.
There is no way to do it right now, but the future is bright for this emerging technology in Egypt. Cryptocurrencies are also gaining steam worldwide too.
The future of cryptocurrencies in Egypt is largely dependent on the willingness and ability of authorities to create a regulatory framework for such instruments which the Egyptian economy will not be able to advance without.
The introduction of such frameworks may lead to wider adoption and acceptance by consumers and businesses, as well as increased economic activity underpinning stronger growth prospects.
Is Cryptocurrency Legal in Egypt – Final Thoughts
Governments and cryptocurrencies have always had a tense relationship. In some countries, this has led to outright bans on buying, owning, and trading.
The bottom line is this:
Cryptocurrency is not legal in Egypt.
It’s also illegal for individuals and businesses based inside Egypt to conduct trades using cryptocurrency.
With these, it is not really surprising that cryptocurrency is illegal in Egypt.
Finally, if you like to trade or invest in crypto and you are in Egypt – you can do that from these exchanges:
- CEX.io
- Paxful
- Kraken
