The Central Bank of Egypt (CBE) has warned Egyptian citizens against dealing with crypto virtual assets, including cryptocurrencies, due to the associated risk, reported Independent Egypt.
The bank recently released a press release, stating that it is following the phenomenon of cryptocurrency trading on regional and international platforms being promoted.
The bank highlighted a number of risks associated with cryptocurrency viz. significant price volatility and swings, lack of regulation around the world, and no permission from central banks. It is therefore wise that no one in Egypt trades high-risk assets such as cryptocurrencies.
In Egypt, local laws prohibit the issuance, trade or promotion of cryptocurrencies, the creation or operation of platforms to exchange them or the performance of related activities.
In 2018, the main Islamic lawmaker in Egypt, Dar al-Ifta, issued a religious edict classifying Bitcoin business transactions as haram as prohibited by Islamic law..
In 2020, financial laws in Egypt were strengthened to prevent the trading or promotion of crypto assets without a license from the Central Bank.
High Cryptocurrency Trading in Egypt
However, a number of Egyptians trade cryptocurrencies, including Bitcoin. A 2021 study by Triple A says that more than 1.7 million people, 1.8% of Egyptians, owned cryptocurrency. In 2020, Egypt saw a record peer-to-peer bitcoin trading volume of over 2.2 million Egyptian pounds.
In a conversation with Al Monitor, Muhammad Abd el-Baseer, a prominent member of the Bitcoin Egypt community, said there is a sign of strong demand for Bitcoin mining and trading in the country.
He further stated,
“The growing number of bitcoin miners and traders is a global phenomenon that has been one of multiple factors behind an increase in demand for bitcoins and, by extension, the rise in the price of the currency. herself. This has allowed those who have obtained it in the past year or the first months of this year at lower prices than the current one to reap unprecedented profits, and many Egyptians are eyeing these levels of profits thanks to their investments in cryptocurrencies.