Apart from the historical pyramids, Egypt is also known to have stringent financial regulations that make it difficult for cryptocurrency companies to do business in the country. Being one of the leading tourist destinations in the country, millions of tourists visit and it would be great if the country would allow them to pay for goods and services using various cryptocurrencies.
The Egypt government seems to have been closing monitoring the cryptocurrency trend especially the current bullrun that has seen the price of bitcoin increase by more than 70% in the last two weeks. The government’s financial regulator has loosened its restrictions on cryptocurrency and is in the process of lifting the ban that made it impossible for people to trade or use cryptocurrencies in the country.
Licensed Cryptocurrency Companies Can Do Business in Egypt
A verified source from Middle East New Agency has revealed that a bill to ban trading, creation, and promotion of any cryptocurrency that is not licensed is in the offing. Previously, the country had banned all cryptos under the existing Islamic law.
The ban was announced by Shawki Allam, the current Grand Mufti of Egypt back in 2018. When announcing the ban, Shawki stated that the blockchain technology that powers cryptos has the potential of undermining the existing legal framework by facilitating money laundering, tax evasion, and other fraudulent activities. The Grand Mufti also raised concerns about cryptocurrency frauds and volatility of prices.
Egypt Warms Up to Cryptocurrency and Blockchain Technology
One of the factors that are motivating Egypt to lift the ban and allow licensed cryptocurrency companies to operate in the country is the fact that the crypto market has continued to grow despite the many challenges facing it.
Neighbouring countries have also begun to embrace the blockchain technology and the governments are softening their stance on cryptocurrencies. According to an article published by Egypt Independent, the proposed bill will give the board of directors of the Central Bank of Egypt (CBE) the ability to monitor and regulate cryptocurrencies in the country. The board will also have the power to regulate multiple potentially expensive licenses that will permit the cryptocurrency businesses to operate.
In part, the bill reads:
“The new law provides legal authority for the electronic authentication of bank transactions, electronic payment orders, and transfer orders as well as for the electronic settlement of checks and the issuance and circulation of electronic checks and electronic discount orders, provided that Board of Directors of CBE issue rules and procedures regulating all the aforementioned actions.”
Notably, this is not the first that the Egypt is considering legalizing cryptocurrencies. At the time of writing, the draft bill is not yet available to the public but you can count on us to keep you updated about this and other new cryptocurrency news.