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🇪🇬Egypt Cryptocurrency Regulations

Evolving stance with recent shift from prohibition to regulated approach.

Last updated: 5/1/2025

Regulatory Clarity

Low

Region

Africa

Legal Status

Legal

Overview

Egypt has shifted from a prohibitive stance on cryptocurrencies to a more regulated approach, with the Central Bank of Egypt developing a licensing framework.

Regulatory Authorities

  • Central Bank of Egypt (CBE)

    Previously prohibited cryptocurrencies, but is now exploring regulation

    Official Website

  • Financial Regulatory Authority (FRA)

    Has not yet established a comprehensive regulatory framework for cryptocurrencies

    Official Website

Legal Status

Cryptocurrencies were previously prohibited in Egypt, but the Central Bank of Egypt (CBE) is now exploring the possibility of regulating them. In 2018, the CBE issued a circular prohibiting banks from dealing with cryptocurrencies. However, in recent years, the CBE has shown a more open attitude towards cryptocurrencies and is considering developing a regulatory framework.

Taxation

Individual Taxation

The Egyptian Tax Authority (ETA) has not yet issued specific guidance on the taxation of cryptocurrencies. However, general income tax principles are likely to apply. Cryptocurrency gains may be subject to income tax, depending on whether the taxpayer is trading or investing.

Business Taxation

Businesses dealing with cryptocurrencies are subject to normal income tax rules. The ETA has not yet issued specific guidance on the VAT treatment of cryptocurrencies.

Reporting Requirements

Taxpayers are required to declare all sources of income in their annual tax returns, including any cryptocurrency gains.

AML/KYC Requirements

Egypt has AML/KYC requirements for financial institutions, but these requirements have not yet been specifically extended to cryptocurrency businesses. However, cryptocurrency exchanges and other service providers are expected to implement AML/KYC procedures to prevent money laundering and terrorist financing.

Licensing Requirements

Requirements

There is no specific licensing regime for cryptocurrency businesses in Egypt. However, the CBE and FRA may require certain businesses to obtain licenses under existing financial sector laws if a regulatory framework is established.

Process

N/A

Exemptions

N/A

Securities Regulations

The Financial Regulatory Authority (FRA) has not yet determined whether cryptocurrencies are securities under Egyptian law. If cryptocurrencies are deemed to be securities, they will be subject to existing securities regulations.

Banking Relationships

The Central Bank of Egypt (CBE) previously prohibited banks from dealing with cryptocurrency businesses. It is unclear whether this prohibition will remain in place if a regulatory framework is established.

Mining Regulations

Cryptocurrency mining is legal in Egypt, but it is not widespread. There are no specific regulations targeting mining operations.

NFT Regulations

Non-fungible tokens (NFTs) exist in a regulatory gray area in Egypt. The CBE and FRA have not yet issued specific guidance on NFTs.

Stablecoin Regulations

The Central Bank of Egypt (CBE) has not yet issued specific guidance on stablecoins.

Central Bank Digital Currency (CBDC)

The Central Bank of Egypt (CBE) is exploring the potential issuance of a Central Bank Digital Currency (CBDC).

DeFi Regulations

Decentralized Finance (DeFi) platforms operate in a regulatory gray area in Egypt. The CBE and FRA have not yet issued specific guidance on DeFi.

Data Privacy Considerations

Cryptocurrency businesses must comply with the Data Protection Law, which establishes requirements for processing personal data. This includes obligations for data minimization, purpose limitation, and security measures.

Dispute Resolution

Disputes involving cryptocurrency in Egypt may be resolved through traditional litigation in Egyptian courts. Arbitration may also be used to resolve cryptocurrency-related disputes.

Recent Developments

  • 2023-09-14Neutral

    CBE Exploring Cryptocurrency Regulation

    The Central Bank of Egypt (CBE) is exploring the possibility of regulating cryptocurrencies.

Upcoming Regulations

  • Regulatory Framework for Cryptocurrencies

    The CBE and FRA are expected to develop a regulatory framework for cryptocurrencies in the coming years.

    Expected: 2025-2026

Resources