Is Crypto Legal in Egypt?

Article 206 of Law No. 194 of 2020 prohibits the issuance or trading of cryptocurrencies, or the establishment or operation of platforms for their trading, or conducting any related activities, without a license from the Board of Directors of the Central Bank.

Given that the CBE has not issued any such licenses, and has reiterated its warnings, this effectively means that the activities typically performed by VASPs (exchanges, custodians, etc.) are prohibited in Egypt.

Law No. 80 of 2002 (Anti-Money Laundering Law), as amended: This is the primary AML/CFT legislation in Egypt.

Prime Minister's Decree No. 164 of 2020 (Executive Regulations of Law No. 80/2002): Provides detailed rules for the implementation of the AML Law.

Identification and Verification: Identifying the customer and verifying their identity using reliable, independent source documents, data, or information. This includes individuals, legal persons, and legal arrangements.

Beneficial Ownership: Identifying the beneficial owner(s) of the customer and taking reasonable measures to verify their identity.

Purpose and Nature of Business: Understanding the purpose and intended nature of the business relationship or transaction.

Ongoing Monitoring: Conducting ongoing due diligence on the business relationship and scrutinizing transactions undertaken throughout the course of that relationship to ensure that the transactions are consistent with the financial institution's knowledge of the customer, their business, and risk profile.

Risk-Based Approach (RBA): Applying CDD measures based on a risk assessment. Activities involving virtual assets would inherently be considered high-risk, necessitating Enhanced Due Diligence (EDD), which would include

Obtaining additional information on the intended nature of the business relationship.

Obtaining information on the source of funds or source of wealth of the customer.

Obtaining information on the reasons for the intended or performed transactions.

Obtaining the approval of senior management for establishing or continuing the business relationship.

Conducting enhanced ongoing monitoring of the business relationship.

Obligation to Report: Any transaction, regardless of amount, where there are reasonable grounds to suspect that it involves proceeds of crime or is linked to terrorist financing, must be reported without delay.

No Tipping-Off: Financial institutions and their employees are prohibited from disclosing to the customer or any third party that an STR has been filed or that an investigation is underway.

Customer Identification Data: All documents, data, and information used for identification and verification.

Transaction Records: All details of domestic and international transactions, including the nature, amount, currency, and parties involved.

Business Correspondence: Records of business correspondence relating to the customer relationship.

The CBE is responsible for licensing, regulating, and supervising banks and payment service providers, and ensures their compliance with AML/CFT regulations. As virtual assets fall under their purview according to Law No. 194 of 2020, they are the key regulator.

The EMLCU is Egypt's Financial Intelligence Unit (FIU) and is responsible for receiving, analyzing, and disseminating STRs to relevant law enforcement authorities. While operationally independent, it often works closely with the CBE.

"Information about the EMLCU is available through dedicated government portals; however, direct access to the EMLCU website may require searching the Arabic portal."

Central Bank of Egypt (CBE) Official Website: https://www.cbe.org.eg/ (While not linking to the specific article, this is the main authority).

For private cryptocurrencies: No specific custodial license framework exists. Instead, Article 206 of Law No. 194 of 2020 broadly prohibits activities related to cryptocurrencies, including trading and potentially custody, without a CBE license. Since no such licenses have been issued for private crypto activities, operating a crypto custody service for private cryptocurrencies would likely be considered illegal.

For a potential future Central Bank Digital Currency (CBDC): If Egypt were to issue a CBDC, its custody would fall under the CBE's purview and existing banking laws, likely managed by the CBE itself or licensed commercial banks.

General banking principles (applicable if licensed entities were to hold digital assets): In the traditional banking sector, client funds are strictly segregated from institutional assets. If a licensed entity were to hold digital assets (e.g., a CBDC), these traditional principles of segregation would likely apply, derived from the Central Bank and Banking Sector Law and related CBE regulations.

General financial institution requirements: Licensed financial institutions in Egypt are subject to capital adequacy requirements and, in the case of banks, participate in the Deposit Insurance Fund. However, these do not specifically extend to covering private cryptocurrency holdings.

Non-existent: There are no specific mandates or regulations in Egypt requiring crypto custodians (which are not legally recognized for private crypto) to utilize cold storage for digital assets.

Non-existent for private crypto custody: Egyptian law does not define "qualified custodian" in the context of cryptocurrencies.

Financial Regulatory Authority (FRA) Official Website: https://fra.gov.eg/ (Regulates non-banking financial markets, but does not currently regulate private crypto custody).

As of the latest information, there is no specific pending legislation in Egypt that would establish a framework for cryptocurrency custody services for private digital assets.

The Egyptian government and CBE have, however, expressed interest in exploring the potential for a Central Bank Digital Currency (CBDC). Any such initiative would likely involve the CBE establishing its own custody rules for that specific digital currency, rather than regulating private crypto custodians.

Egypt is a member of the Financial Action Task Force (FATF), and the FATF Recommendations (specifically Recommendation 15 and its Interpretive Note) call for countries to regulate Virtual Asset Service Providers (VASPs), which include custodians. While Egypt has taken steps to enhance its AML/CFT framework, its current approach to private cryptocurrencies largely bypasses directly regulating VASPs by prohibiting many of their activities. Future pressure from FATF could potentially lead to a re-evaluation, but no specific custody legislation is currently on the horizon.

General Cryptocurrencies (e.g., Bitcoin, Ethereum): Regulated primarily by the Central Bank of Egypt (CBE). The stance here is highly restrictive.

Digital Assets as Financial Instruments (e.g., tokenized securities, NFTs as investment products): Regulated by the Financial Regulatory Authority (FRA) under specific conditions. This is a more recent and developing area.

For General Cryptocurrencies (CBE): The regime is largely prohibitory unless explicitly licensed by the CBE. Given no such licenses have been publicly issued for general crypto exchanges, it effectively acts as a prohibition for most entities.

For Digital Assets as Financial Instruments (FRA): This is a licensing regime for specific activities related to capital markets and non-banking financial services.

Legal Basis: Article 206 of Law No. 194 of 2020 (the Central Bank and Banking Sector Law) explicitly states: "It is prohibited to issue cryptocurrencies or trade them, or promote them, or establish or operate platforms for their trading, or to carry out activities related to them without obtaining a license from the Board of Directors of the Central Bank in accordance with the rules and conditions determined by it."

Exchanges: While the law allows for a license, the CBE has not, to date, issued any licenses for public-facing cryptocurrency exchanges that facilitate the trading of general cryptocurrencies. The CBE has consistently warned against dealing in such assets, citing risks like money laundering, terrorism financing, and price volatility. Therefore, establishing a general crypto exchange is de facto prohibited.

Custody Providers: Similarly, providing custody services for general cryptocurrencies would fall under the prohibition as it is an "activity related to them" without a CBE license.

Using blockchain technology for cross-border remittances or internal payment systems by licensed banks or payment service providers might be permissible if approved by the CBE, but this is distinct from processing payments in general cryptocurrencies like BTC or ETH for commercial transactions.

Any entity offering payment services (even if blockchain-based) must obtain a Payment Service Provider (PSP) license from the CBE, which comes with stringent requirements. Using general cryptocurrencies as a payment method would likely still fall under the general prohibition unless specific approval is given, which is rare.

Legal Basis: The FRA issued Decree No. 171 of 2023 "Regarding the Rules for the Establishment and Licensing of Companies to Practice Non-Banking Financial Activities Using Digital Technology." This framework focuses on digital assets that qualify as financial instruments (e.g., tokenized securities, tokenized bonds, NFTs representing fractional ownership in real assets or funds).

Exchanges/Platforms for Digital Financial Instruments: Entities wishing to operate a platform for trading these digital financial instruments (e.g., a digital stock exchange for tokenized securities) would need to obtain a specific license from the FRA, adhering to the requirements of Decree 171 and relevant capital market laws.

Custody Providers for Digital Financial Instruments: Companies providing custody for these specific digital financial instruments would also need to be licensed by the FRA as a custodian for financial assets, demonstrating robust security, insurance, and technological infrastructure.

Payment Processors: This framework is less about payment processing in the traditional sense and more about facilitating capital market activities using digital assets.

Capital Requirements: Very high, commensurate with financial stability and risk exposure.

AML/KYC: Strict adherence to Egypt's Anti-Money Laundering Law No. 80 of 2002 and its executive regulations, FATF recommendations, and local CBE guidelines. This would include robust customer due diligence, transaction monitoring, and suspicious activity reporting.

Local Presence: Mandatory establishment of a local entity (e.g., a joint-stock company) in Egypt, with a physical office and local management.

Technology & Security: Advanced IT infrastructure, cybersecurity measures, data protection, and resilience plans.

Consumer Protection: Mechanisms for dispute resolution, transparent fee structures, and clear risk disclosures.

Fit and Proper Test: For shareholders, directors, and senior management.

Capital Requirements: Specific minimum capital requirements will be set by the FRA based on the type of activity. These will be substantial, aligning with other licensed financial service providers in the capital markets.

AML/KYC: Full compliance with Egyptian AML laws and FRA regulations. Companies must have robust AML/CTF policies, procedures, and systems.

Local Presence: The entity must be legally incorporated and headquartered in Egypt.

Technology & Security: Demonstrable capacity for secure digital asset management, robust cybersecurity protocols, data privacy compliance, and IT audit readiness.

Corporate Governance: Clear ownership structure, independent board members, risk management, internal controls, and audit functions.

Qualified Personnel: Experienced and qualified staff in financial services, technology, and compliance.

Business Plan: A detailed business plan outlining operations, risk management, and financial projections.

Initial Inquiry/Consultation: Engaging with the CBE.

Comprehensive Application Submission: Detailed business plan, legal structure, financial projections, compliance frameworks (AML/KYC), IT security architecture, management profiles, and corporate governance documents.

Due Diligence & Review: CBE's extensive review of all submitted documents and the background of key personnel.

On-site Inspections: Potential inspections of premises and systems.

Final Approval & License Issuance: If all conditions are met, which is highly unlikely for general crypto in the current climate.

Pre-application Meeting: Initial discussions with the FRA to understand the specific requirements for the proposed activity.

Detailed operational manual, risk management framework, AML/CTF policies.

CVs and declarations of fitness and propriety for management and key personnel.

Technology audit reports and cybersecurity plans.

Review and Clarifications: The FRA will review the application, request additional information, and conduct interviews.

Approval in Principle: Granting of a preliminary approval.

Fulfillment of Conditions: The applicant must meet any remaining conditions (e.g., hiring specific personnel, setting up systems).

Final License Issuance: Upon successful completion of all conditions.

Central Bank and Banking Sector Law (Law No. 194 of 2020)

Reference: Al-Jarida Al-Rasmiya (Official Gazette of Egypt) Issue No. 34 (A), dated 20 August 2020.

Legal Analysis (Example Source - Deloitte): Many legal firms provide summaries: https://www2.deloitte.com/content/dam/Deloitte/xe/Documents/legal/mena-legal-review/me_legal-review_banking-law_no-194.pdf

Financial Regulatory Authority (FRA) Decree No. 171 of 2023

"Regarding the Rules for the Establishment and Licensing of Companies to Practice Non-Banking Financial Activities Using Digital Technology."

Reference: The FRA website usually publishes its decrees.

URL (FRA Website - Arabic, look for news/decrees): https://fra.gov.eg/

Legal News/Analysis (Example Source): Many Egyptian and international legal news outlets covered this decree upon its release. Searching for "FRA Decree 171 2023 Egypt" will yield relevant articles.

Anti-Money Laundering Law No. 80 of 2002 (and its Executive Regulations)

This law, along with subsequent amendments and executive regulations, forms the basis for AML/CTF compliance in Egypt.

CBE Law No. 194 of 2020 (Central Bank and Banking Sector Law)

Article 206 prohibits unlicensed crypto activity, but the CBE has issued provisional licenses as of early 2024.

Example analysis (not direct law link): Baker McKenzie on Egypt's Banking Law 2020 (search for virtual assets/crypto sections).

Penalties: Violations of Article 206 carry severe penalties, including imprisonment and substantial fines.

Implication: This law effectively bans most cryptocurrency activities within Egypt. Therefore, the concept of an "Egyptian VASP" operating legally and needing to comply with sanctions is not currently applicable. Any crypto activity is, by default, illegal under Egyptian law, making sanctions compliance secondary to the primary violation.

Obligation: As a member state of the United Nations, Egypt is obligated to implement UN Security Council (UNSC) resolutions imposing targeted financial sanctions, particularly those related to terrorism financing and proliferation financing (TF/PF).

Mechanism: Egypt's Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) framework is the primary mechanism for implementing UN sanctions. The Egyptian Money Laundering and Terrorist Financing Combating Unit (EMLFCU) is the financial intelligence unit responsible for receiving suspicious transaction reports and enforcing AML/CTF regulations, which include sanctions compliance.

Requirements: Any financial institution in Egypt (even if crypto were legal) would be required to

Screen customers and transactions against the UN Consolidated Sanctions List.

Freeze assets of designated individuals and entities without delay.

Legal Reference: Egypt's Anti-Money Laundering Law No. 80 of 2002, as amended, and its executive regulations, mandate compliance with international obligations, including UN Security Council resolutions on targeted financial sanctions.

Egypt’s AML/CFT regime and UN‑sanctions implementation are now described in the latest FATF Mutual Evaluation Report (2024), reflecting updated compliance status.

U.S. persons globally (U.S. citizens, permanent residents, entities organized under U.S. law, and anyone within the U.S.).

Transactions that touch the U.S. financial system or involve U.S. origin goods/services.

Foreign entities that facilitate significant transactions for or on behalf of designated persons (secondary sanctions).

Foreign VASPs serving Egyptian customers, especially if they have any U.S. nexus or deal with U.S. dollar-denominated assets, must comply with OFAC regulations.

Sanctioned Entity Screening: Screening all users (including Egyptian users) against the Specially Designated Nationals and Blocked Persons (SDN) List and other OFAC sanctions lists.

the accurate statement about Egypt now is that it is not specifically listed in the OFAC Sanctioned Countries List from 2026 for comprehensive sanctions or stringent restrictions.

Transaction Monitoring: Monitoring crypto transactions for patterns indicative of sanctions evasion or involvement with sanctioned parties.

IP Blocking: Implementing IP address blocking for sanctioned jurisdictions.

Penalties for Violations: Severe civil and criminal penalties, including massive fines (millions to billions of USD) and imprisonment.

EU nationals and entities globally.

Any business conducted in whole or in part within the territory of the EU.

Transactions that involve EU financial institutions or assets.

Sanctioned Entity Screening: Screening against the EU Consolidated List of Sanctions.

Geographic Restrictions: Implementing restrictions on dealings with individuals/entities in EU-sanctioned jurisdictions.

Penalties for Violations: Member states enforce penalties, which vary but can include substantial fines and imprisonment.

For entities operating legally within Egypt (e.g., traditional banks): Must screen customers and transactions against the UN Consolidated Sanctions List as part of their AML/CTF obligations.

For foreign VASPs dealing with Egyptian customers: Must screen against OFAC SDN List, EU Consolidated List, and UN Consolidated Sanctions List, in addition to their regular KYC/AML checks.

Egypt (Domestic): As per CBE Law 194/2020, there's an effective geographic restriction on any cryptocurrency activity within Egypt without a license.

International Sanctions: Foreign VASPs must implement geographic restrictions based on their jurisdictional obligations. This means prohibiting services to users identified as being from or linked to comprehensively sanctioned countries (e.g., Iran, North Korea, Syria, Cuba, Crimea region, etc.) as designated by OFAC, EU, and UN.

For engaging in illegal crypto activities: Imprisonment and substantial financial penalties. Specific amounts are subject to the law's exact wording and judicial discretion, but can be in the millions of Egyptian Pounds.

Civil penalties: Can range from thousands to hundreds of millions of USD per violation, depending on the severity, knowledge, and cooperation.

Criminal penalties: Up to 20 years imprisonment and fines of up to $1 million for individuals, and up to $20 million for corporations.

Penalties are determined by individual EU member states but can include significant fines and imprisonment.

No Specific Crypto Sanctions List: Egypt does not maintain a specific domestic sanctions list dedicated to cryptocurrencies, nor does it have a broad, publicly published domestic sanctions list akin to the OFAC SDN list for general financial crimes.

UN Sanctions Implementation: Egypt primarily implements the UN Security Council Sanctions List for targeted financial sanctions related to terrorism and proliferation financing. These lists do not specifically distinguish between traditional and crypto assets but aim to freeze all assets of designated individuals and entities.

Domestic Terrorist Lists: While Egypt may designate individuals or entities as terrorists under its domestic anti-terrorism laws, these are typically related to national security concerns and would feed into broader asset freezing directives, not a distinct "sanctions list" for crypto in the international sense. These lists are not typically publicly consolidated and shared like international sanctions lists.

Law No. 194 of 2020 regarding the Central Bank and Banking System Law (CBE Law)

The Financial Regulatory Authority (FRA) — الهيئة العامة للرقابة المالية — is the main regulator for non-bank financial activities in Egypt, including capital markets, insurance, and non-bank financing, with its official website at fra.gov.eg (الهيئة العامة للرقابة المالية – نبني الجسور لا الحواجز).

The FRA has an Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) System webpage dedicated to combating money laundering and terrorist financing, indicating its role in AML oversight of non-bank financial entities (AML/CFT System – الهيئة العامة للرقابة المالية).

The FRA publishes an Authority Legislative Portal with categories including "Anti-Money Laundering and Counter-Terrorist Financing Legislations," confirming it maintains AML/CFT legal instruments for entities under its supervision (Capital Market – الهيئة العامة للرقابة المالية).

The FRA maintains FinTech Legislations as a separate legislative category within its portal, suggesting it is actively developing frameworks for financial technology activities (Knowledge Bank – الهيئة العامة للرقابة المالية).

Egypt's legal framework for AML/CFT is anchored in laws and regulations administered and enforced by the FRA for non-bank financial activities, with a dedicated section on the FRA's website titled "منظومة مكافحة غسل الأموال وتمويل الإرهاب" (AML/CFT System) (AML/CFT System – الهيئة العامة للرقابة المالية).

The FRA publishes Capital Market Legislations as a primary legal category, which would govern any securities-related digital asset activities, though no specific crypto-asset law is referenced (Capital Market – الهيئة العامة للرقابة المالية).

The Non-Bank Financial Activities Legislations category covers financing activities and would apply to any non-bank entity seeking to offer digital financial services outside the banking system (Knowledge Bank – الهيئة العامة للرقابة المالية).

The FinTech Legislations category on the FRA's website suggests ongoing development of financial technology rules, but source material does not specify a dedicated virtual asset law (Capital Market – الهيئة العامة للرقابة المالية).

The FRA maintains an International Relations and International Cooperation section, indicating engagement with international standard-setting bodies, though specific FATF or MENAFATF membership details are not provided in the source text (AML/CFT System – الهيئة العامة للرقابة المالية).

The FRA provides Capital Market Incorporation and Licensing services, which would be the entry point for any entity seeking authorization to operate in capital markets, but no crypto-specific license category is listed (Capital Market – الهيئة العامة للرقابة المالية).

Non-Bank Financial Activities Incorporation and Licensing is administered by the FRA, covering financing activities, but the source text does not reference crypto-asset services as a licensable non-bank financial activity (AML/CFT System – الهيئة العامة للرقابة المالية).

The FRA operates a FinTech Sandbox (mentioned on its homepage), which may serve as a testing ground for innovative financial products including digital assets, though the source text does not confirm sandbox participation for crypto firms (الهيئة العامة للرقابة المالية – نبني الجسور لا الحواجز).

No specific capital requirements for crypto-asset service providers are published — the source text contains no monetary thresholds or capital adequacy figures for VASPs (Knowledge Bank – الهيئة العامة للرقابة المالية).

The FRA publishes Capital Adequacy Standards as a regulatory topic, applicable to financial institutions, but no crypto-specific standards are mentioned (الهيئة العامة للرقابة المالية – نبني الجسور لا الحواجز).

Zero entities have been licensed as cryptocurrency exchanges, digital asset custodians, or virtual asset service providers in Egypt — the source material provides no evidence of any such licenses being granted by the FRA or any other Egyptian authority (Capital Market – الهيئة العامة للرقابة المالية).

The absence of a licensing pathway is explicit — while the FRA lists licensing services for capital market, insurance, and non-bank financing activities, no "virtual assets" or "crypto" category appears in any of these licensing frameworks (الهيئة العامة للرقابة المالية – نبني الجسور لا الحواجز).

The FRA's AML/CFT System page is titled "منظومة مكافحة غسل الأموال وتمويل الإرهاب" (Anti-Money Laundering and Counter-Terrorist Financing System), indicating FRA-supervised entities are subject to AML obligations, though the source text does not detail specific CDD or EDD procedures (AML/CFT System – الهيئة العامة للرقابة المالية).

The FRA publishes "Important Announcements" (تعميمات ومنشورات) which likely include AML/CFT circulars, but the source text does not specify the content of these announcements regarding KYC, STR, or record retention requirements (Capital Market – الهيئة العامة للرقابة المالية).

The FRA provides a "Negative Lists" service through its electronic services portal, which is a critical AML tool for screening customers against prohibited lists — this is accessible at services.fra.gov.eg (Capital Market – الهيئة العامة للرقابة المالية).

No specific CDD, EDD, STR reporting thresholds, or record retention periods are stated in the source text — these would typically be found in the FRA's AML/CFT legislation portal, but specific values are not disclosed in the provided source material (AML/CFT System – الهيئة العامة للرقابة المالية).

The FRA maintains Enforcement and Petitions mechanisms, including "Capital Market Enforcement" and "Financing Grievances," implying that AML compliance violations would be subject to FRA enforcement and appeal processes (Knowledge Bank – الهيئة العامة للرقابة المالية).

The FRA lists "Capital Market Enforcement" as a specific function, indicating it has authority to take enforcement measures against capital market violations, though no crypto-specific enforcement cases are documented in the source text (Capital Market – الهيئة العامة للرقابة المالية).

No enforcement actions, fines, or penalties specifically related to cryptocurrency or digital asset AML violations are mentioned in the source text — this is consistent with the lack of a formal licensing framework (Knowledge Bank – الهيئة العامة للرقابة المالية).

The FRA provides "Petitions" and "Grievances" mechanisms, allowing regulated entities to appeal enforcement decisions, but no specific crypto-related case outcomes are available in the source material (Capital Market – الهيئة العامة للرقابة المالية).

No tax guidance has been issued for virtual assets — the source text contains no information from the Egyptian Tax Authority (مصلحة الضرائب المصرية) or any other entity regarding taxation of cryptocurrency gains, capital gains on digital assets, or VAT treatment of crypto transactions (الهيئة العامة للرقابة المالية – نبني الجسور لا الحواجز).

The FRA mentions coordination with the Egyptian Tax Authority (مصلحة الضرائب) in a news item about a "coordinating committee between the FRA, the stock exchange, and the tax authority," but this coordination relates to general non-bank financial services, not crypto taxation (الهيئة العامة للرقابة المالية – نبني الجسور لا الحواجز).

No capital gains tax framework for digital assets exists in the provided sources — the FRA's published standards and legislation lists do not reference crypto-asset taxation (Knowledge Bank – الهيئة العامة للرقابة المالية).

No dedicated legal framework for virtual assets: Egypt's FRA regulates non-bank financial activities but has not established a specific licensing regime for cryptocurrency exchanges, wallet providers, or other VASPs, creating a legal vacuum (Capital Market – الهيئة العامة للرقابة المالية).

Regulatory uncertainty is the primary risk: any business engaging in crypto activities in Egypt faces the risk of operating without valid authorization, as no licensing pathway exists, potentially exposing them to enforcement action for unauthorized financial activity (AML/CFT System – الهيئة العامة للرقابة المالية).

Potential conflict between financial regulators: while the FRA oversees non-bank financial activities, the Central Bank of Egypt (not covered in the provided sources) also has interests in payment systems and digital currencies, creating potential jurisdictional ambiguity for crypto businesses (الهيئة العامة للرقابة المالية – نبني الجسور لا الحواجز).

Banking access risk: even if a crypto business could navigate FRA licensing, access to traditional banking services is not guaranteed as the FRA's published regulatory framework does not address crypto-fiat on-ramps (Capital Market – الهيئة العامة للرقابة المالية).

Implementation gap between the FRA's stated commitment to FinTech and its actual crypto posture: while the FRA promotes its FinTech sandbox and FinTech legislations, no path to a crypto license is evident, and the sandbox does not appear to have produced any licensed crypto firms (الهيئة العامة للرقابة المالية – نبني الجسور لا الحواجز).

AML/CFT System – الهيئة العامة للرقابة المالية

الهيئة العامة للرقابة المالية – نبني الجسور لا الحواجز

Capital Market – الهيئة العامة للرقابة المالية

Knowledge Bank – الهيئة العامة للرقابة المالية

The Central Bank of Egypt (CBE) is the primary financial regulator, with authority under its laws and regulations, published at CBE Overview, but it has not published any virtual asset-specific regulation on that page.

Egypt is not subject to comprehensive U.S. sanctions; however, U.S. exporters must comply with the Export Administration Regulations (EAR) (15 CFR Parts 730–774) administered by the Bureau of Industry and Security (BIS) .

The United Kingdom's financial sanctions regime for Egypt was withdrawn effective 23:00 on 31 December 2020, replaced by the UK's Misappropriation of State Funds sanctions regime .

The European Union revoked its sanctions framework for Egypt on 12 March 2021 and delisted 9 individuals, ending EU-wide restrictions specific to Egypt .

No Egyptian government body has published a dedicated framework for virtual assets, and no licensing regime for crypto service providers is listed in the CBE's published regulations CBE Overview.

No Egyptian regulator—including the CBE—has established a licensing process for cryptocurrency exchanges, custodians, or virtual asset service providers, as no such framework appears in published regulations CBE Overview.

Zero entities have been licensed to conduct crypto-related activities in Egypt; no licensing authority or approved list exists in public sources.

BIS licenses are required for U.S. exports of dual-use goods, software, and technology to Egypt under the EAR, but this applies to U.S. exporters, not Egyptian crypto businesses .

No AML/KYC requirements specific to virtual assets have been issued by Egyptian authorities; no such guidance appears on the CBE's published regulations page CBE Overview.

BIS provides "Red Flags" and "Know Your Customer" guidance for U.S. exporters to identify possible EAR violations, but this relates to export controls, not crypto AML obligations .

The absence of any virtual asset law or licensing regime creates legal uncertainty for crypto businesses operating in or from Egypt, as the CBE's published regulations contain no crypto-specific provisions CBE Overview.

Egypt's freedom from comprehensive U.S. sanctions is limited: U.S. anti-boycott laws and EAR obligations still apply to U.S. persons, which could affect U.S.-linked crypto ventures .

The withdrawal of UK and EU sanctions regimes means no specific Egypt-focused restrictions remain from those jurisdictions, but general anti-money laundering and counter-terrorist financing regimes under the Sanctions and Anti-Money Laundering Act 2018 (UK) still apply .

BIS EUCs can be triggered for any U.S.-origin item, including software or technology used in crypto operations in Egypt; failure to pass puts companies at risk of Unverified List or Entity List designation .

Legal Basis: Article 206 of Law No. 194 of 2020 (the Central Bank and Banking Sector Law) explicitly states: "It is prohibited to issue cryptocurrencies or trade them, or promote them, or establish or operate platforms for their trading, or to carry out activities related to them without obtaining a license from the Board of Directors of the Central Bank in accordance with the rules and conditions determined by it."

Legal Basis: The FRA issued Decree No. 171 of 2023 "Regarding the Rules for the Establishment and Licensing of Companies to Practice Non-Banking Financial Activities Using Digital Technology." This framework focuses on digital assets that qualify as financial instruments (e.g., tokenized securities, tokenized bonds, NFTs representing fractional ownership in real assets or funds).