Whether cryptocurrency is permitted in Egypt is a question many investors ask. The country’s stance is highly restrictive: the Central Bank of Egypt (Cbe) bans issuing or trading cryptocurrencies without prior authorization. Personal holding is not expressly outlawed, but most related activities can trigger severe penalties.
Anyone building or investing in digital assets must navigate Egypt’s tight rules. Interest keeps rising, yet the law offers little protection for individuals, and companies exploring blockchain or crypto finance face significant uncertainty.
For individuals, the main risks of trading include potential criminal exposure (even when using offshore services), loss of funds through fraud or hacks, lack of consumer recourse if a platform freezes or disappears, banking and payment interruptions when transfers are flagged, and uncertainty over how any discovered gains might be treated by authorities.
In practice, the biggest risk is that ordinary trading activity can be treated as a regulated financial offense, leaving users exposed to penalties and with limited options if something goes wrong.
The Cbe is the lead authority on cryptocurrency. Beyond formal prohibitions, the bank and other institutions have warned since 2018 that crypto use can threaten national security and financial stability.
Historical Context
Initial reactions in Egypt were skeptical, including from religious authorities. In early 2018, Dar al-Ifta, the top Islamic body, issued a nonbinding fatwa deeming crypto transactions haram due to concerns over security, speculation, and money laundering—framing both public debate and the state’s outlook.
Also in 2018, the Cbe cautioned the public about the risks of using or trading crypto. Law No. 194 of 2020 later anchored the restrictions, and by 2021 activities lacking Cbe approval were explicitly curtailed and punishable.
The trajectory moved from religious guidance to legislative enforcement, with a consistent aim: protect the national financial system and deter speculative or uncontrolled currency use.
Regulatory Framework
Key Regulatory Authorities
The Cbe is the primary regulator, and no other body claims jurisdiction over crypto. Under Law No. 194 of 2020, creating, issuing, promoting, or transacting in digital assets without Cbe authorization is prohibited.
Licensing and Registration Requirements
No crypto exchanges or related businesses are licensed. Operating requires prior approval from the Cbe, and none had been granted as of 2026.
Aml & Kyc Requirements
Because cryptocurrency activity is unlawful, there are no bespoke Aml or Kyc rules for crypto entities. General Aml obligations apply to financial institutions, but crypto remains outside the formal financial system.
Taxation of Cryptocurrency
There is no dedicated tax regime for cryptocurrencies. Income from digital assets is not formally recognized for tax purposes, yet profits from banned trading can still lead to penalties or asset seizure. If gains are discovered, authorities may still treat them as undeclared income or proceeds tied to prohibited activity, which can trigger broader compliance scrutiny even without crypto-specific tax rules.
Regulation of Icos, Stos, and Other Assets
Icos, Stos, and comparable instruments are not separately regulated. They fall under the general prohibition on issuing and trading digital assets.
Egypt’s Crypto Policies
Regulatory Approach to Usage
Cryptocurrencies are not legal tender. Using them for payments, trading, or investment without Cbe authorization is banned and exposes users to fines and imprisonment. Egypt does not have an officially authorized Bitcoin atm network; operating a machine that sells or buys Bitcoin would likely be treated as facilitating prohibited crypto transactions, and using such a service can carry the same underlying legal risks as any other banned trading activity.
Crypto Mining
There is no explicit mining statute, but mining entails producing coins, which conflicts with Law No. 194. Discovered operations face legal consequences.
Government Initiatives or Cbdcs
Egypt has not launched a central bank digital currency (Cbdc) or public blockchain pilots. Policy focuses on preserving central control over money and preventing disruption from decentralized assets.
Penalties for Non-Compliance
| Violation | Potential Penalty | Legal Reference |
|---|---|---|
| Issuing or creating cryptocurrencies without authorization | Imprisonment, substantial fines, and confiscation | Law No. 194 of 2020 |
| Promoting cryptocurrencies without authorization | Imprisonment, substantial fines, and confiscation | Law No. 194 of 2020 |
| Trading or using cryptocurrencies for payments without authorization | Imprisonment, substantial fines, and confiscation | Law No. 194 of 2020; Central Bank of Egypt warnings (September 2022) |
Egypt’s Approach to Crypto Innovation
Regulatory Sandbox or Innovation Zones
No crypto or blockchain sandbox exists. Strict rules limit experimentation and testing.
Crypto Adoption in Business
Despite legal exposure, crypto ownership appears to be widespread. Business uptake is minimal: banks and retailers do not accept crypto, and companies are discouraged from blockchain-based payments.
Blockchain Development
Local development remains modest. A few startups show interest, but there are no large, government-backed blockchain projects underway.
Notable Challenges and Issues
Inconsistencies in Regulation
Tension persists between the fatwa and civil law. Although nonbinding, the fatwa shapes opinion and complements the Cbe’s statutory ban.
Challenges to Enforcement
Decentralization complicates enforcement. While domestic access is restricted, Egyptians can still reach offshore platforms such as Binance or Gemini and fund accounts with Egp, revealing the limits of regulating borderless assets. In practice, Egyptians also use wallet apps and offshore trading apps such as Binance, Gemini, Coinbase Wallet, or MetaMask, often without any local licensing or endorsement. Binance is unlicensed; access can vary and may be restricted by service providers, but the core issue is that using it for trading remains unauthorized. Using a Vpn to reach an offshore platform is not, by itself, a crypto-specific offense under the central bank’s framework, but if trading is detected (with or without a Vpn), the same penalties for the underlying prohibited activity can apply.
Public Perception
- Official skepticism from authorities
- Growing public curiosity
- High estimated ownership despite prohibitions
- Media coverage mixes caution and interest
Regulatory Trends and Future Outlook
Recent Developments
Law No. 194 in 2020 formalized the prohibition. Since then, the Cbe has tightened warnings and highlighted legal risks. A 2019 draft to license crypto businesses never became law.
Predictions for the Future
International dynamics may spur gradual change, but a cautious stance is likely to remain. If global norms shift, Egypt could move toward a licensed, tightly regulated framework.
Global Implications
Egypt’s strict approach influences peers across Mena. Continued prohibition may isolate its market; a measured opening could encourage wider regional adoption.
Conclusion
Egypt’s regime is narrow and led by the Central Bank of Egypt under Law No. 194 of 2020. Possession is not directly banned, but most crypto activity is prohibited and punishable. Interest nevertheless grows. Given evolving global rules, businesses, investors, and users must interpret the landscape carefully.
Frequently Asked Questions (FAQ)
1. Is Cryptocurrency Legal in Egypt?
The Central Bank of Egypt prohibits issuing, promoting, or trading cryptocurrencies without its approval.
2. Can I Own Bitcoin or Any Other Cryptocurrencies in Egypt?
Holding is not expressly criminalized, but using, selling, trading, or promoting crypto is illegal and risky.
3. Is Crypto Income or Gain in Egypt Taxable?
No dedicated tax rules apply because crypto activity is unlawful.
4. Is Binance Crypto Exchange Legal in Egypt?
No. Platforms such as Binance are unlicensed by Egyptian authorities, and using them for trading remains unauthorized. Access is not guaranteed and may be restricted, and Egyptians who trade on Binance can face the same legal exposure as with any other prohibited crypto activity.
5. If I Use Crypto in Egypt, What Will Be the Consequences?
Breaches can lead to fines, imprisonment, and confiscation under Law No. 194 of 2020.
6. Is It Illegal to Mine Currency in Egypt?
Mining is not explicitly named in the law, but producing coins conflicts with the prohibition and is treated as restricted.
7. Can an Egyptian Business Accept Cryptocurrency as a Method of Payment?
No. Crypto is not legal tender and is not permitted in official transactions.
8. Has Egypt Reached the Moment of Releasing a Cbdc or Digital Currency?
No. There is no government-endorsed Cbdc or public blockchain initiative.
9. How Many Egyptians Use Cryptocurrencies?
No official count is published, and estimates vary.
10. Is There a Channel or Blog Where One Can Stay Informed on the Egyptian Crypto Laws Updates?
For official notices and announcements, consult the Central Bank of Egypt’s website.
