Egypt Bill To Allow Cryptocurrency Companies That Acquire Key Licenses
Egyptian regulators are said to have loosened some of the restrictions placed on cryptocurrency and crypto-related businesses in the country.
The Middle East News Agency has cited a source privy to the developments as saying that Egypt has initiated a bill that seeks to prohibit unlicensed crypto related activities.
The source explained that the proposed bill wants a ban on activities like token creation, promotion or trading of digital assets that are offered without regulatory approval.
Cryptocurrencies are forbidden in the country under Islamic law.
In early 2018, Egypt’s Grand Mufti Shawki Allam banned all cryptocurrency activities, stating at the time that the new technology was likely to end up undermining the country’s legal system.
He said that crypto could be used to promote money laundering and tax evasion among other fraudulent activities.
The Grand Mufti also expressed concern regarding cryptocurrencies being wildly volatile assets, as well as cases or rising scams.
A year on and the crypto market has expanded considerably, with several countries within the region ramping up efforts in blockchain technology. It appears that has had a bearing on Egyptian authorities, leading to changes being envisioned in the proposed bill.
According to a report in the Egypt Independent, the new law would give the Central Bank of Egypt (CBE) regulatory authority over the crypto industry. CBE’s board of directors will have the right to regulate as well as require that businesses acquire licenses before rolling out their crypto services.
The report states that if lawmakers pass the bill, then entities face prospects of having to get multiple licenses from the financial regulator.
As per the Egypt Independent, the new law gives the CBE the legal authority to “issue rules and procedures” that will regulate the financial industry.
The regulations include the authentication of transactions involving bank accounts, electronic payment orders, and other money transfer orders.
The central bank will also control the issuance, circulation, and settlement of electronic checks and discount orders.
It is not the first time Egyptian regulators will be looking at crypto and its legalization. Regulators have before moved to quash speculation that local banks could be allowed to handle bitcoin transactions.
Disclaimer: This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.