Egypt’s central bank issued a crypto warning – violators risk prison terms – regulation Bitcoin News

Egypt’s central bank issued a crypto warning – violators risk prison terms – regulation Bitcoin News

The Central Bank of Egypt (CBE) has issued a new warning about cryptocurrencies, noting that violators could face prison terms. The law of the Egyptian central bank “prohibits the issuance, trading or promotion of cryptocurrencies, the creation or operation of platforms for trading them or performing related activities.”

Crypto warning issued by the Central Bank of Egypt

The Central Bank of Egypt (CBE) has renewed its warning on all types of cryptocurrencies, citing a number of risks, including high volatility, use by financial criminals and e-piracy, the Egypt Independent reported on Tuesday. The ECB also stressed that cryptocurrencies are not issued or endorsed by a central bank or any other official body.

“In the same context, the Law of the Central Bank of Egypt and the Banking System — promulgated by Law no. 194 of 2020 — prohibits the issuance, trading or promotion of cryptocurrencies, the creation or management of platforms for trading them or performing related activities. “, says the CBE announcement and adds:

Anyone who breaches this will face imprisonment and a fine of not less than £1 million and not more than LE 10 million [$516,340]or one of these two penalties.

The Central Bank of Egypt issued a similar warning about cryptocurrencies in January 2018, specifically targeting bitcoin, stating:

It is worth noting that cryptocurrencies are not issued by any central bank, nor by any official central issuing body that can be held accountable.

“Furthermore, cryptocurrencies are not backed by any tangible assets and are not under the supervision of any regulator worldwide, and consequently lack the official government guarantee and support enjoyed by other official currencies issued by central banks,” the central bank added.

Egypt’s Dar El-Ifta, the government’s main Islamic institution for issuing fatwas (religious opinions), issued an edict in January 2018, declaring that all use of cryptocurrency is ḥarām, or forbidden – including buying, selling and leasing.

What do you think of the Central Bank of Egypt’s crypto warning? Let us know in the comments section below.

Egypt’s central bank issued a crypto warning – violators risk prison terms – regulation Bitcoin News

Kevin Helms

An Austrian economics student, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.




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