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The Central Bank of Egypt (CBE) has issued a new cryptocurrency warning, noting that violators could face jail. Egypt’s central bank law “prohibits the issuance, trading or promotion of cryptocurrencies, the creation or operation of platforms for trading or the performance of related activities”.

Crypto warning issued by the Central Bank of Egypt

The Central Bank of Egypt (CBE) has renewed its warning against all types of cryptocurrencies, citing a number of risks including high volatility, use in financial crimes and electronic hacking, Egypt reported on Tuesday. Independent. The ECB also pointed out that the crypto is neither issued nor guaranteed by the central bank or any other official authority.

“In the same context, the Law on the Central Bank of Egypt and the Banking System – enacted by Law No. 194 of 2020 – prohibits the issuance, trading or promotion of cryptocurrencies, the creation or operating platforms for trading, or carrying out related activities,” reads the EPC’s statement, adding:

Anyone who violates this rule will be imprisoned and fined at least one million pounds and at most LE 10 million. [$516,340]or one of these two penalties.

Egypt’s central bank issued a similar cryptocurrency warning in January 2018, specifically naming bitcoin, stating:

It should be noted that cryptocurrencies are not issued by any central bank or official central issuing authority that can be held responsible.

“Furthermore, cryptocurrencies are not backed by any tangible assets and are not supervised by any regulators in the world, and therefore they do not have the official government guarantee and support that other official currencies issued by central banks,” the central bank added.

Egypt’s Dar El-Ifta, the government’s main Islamic institution responsible for issuing fatwas (religious opinions), issued a decree in January 2018, declaring that all use of cryptocurrency was ḥarām or prohibited, including the buying, selling and renting.

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

Kevin Helms

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

Image credits: Shutterstock, Pixabay, Wiki Commons

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