Egypt is one of the exceptionally harsh countries when it comes to the cryptocurrency industry. Now, however, it will allow licensed companies to operate in this field.
Egypt's harsh attitude
Despite the rumours that Egypt is to introduce its own cryptocurrency
, the country was against this industry and introduced an absolute ban
on it. In January 2018, the Grand Mufti of Egypt, Shaw Allam
, announced this ban on the basis of Islamic law. He argued that cryptocurrencies would begin to undermine the system by evading taxes, money laundering, and terrorist financing.
Allam made his theses in the form of a fatwa
, special writing that would pass judgement on the legal controversy. It is not legally binding in any way, but it is treated as a top-level opinion, which must be reckoned with. This was probably the first case in which the religious leader of the Islamic State banned cryptocurrencies on the basis of religious law.
Easing the position
Nevertheless, after some time, when the market began to become more transparent - including areas around Egypt - the government began to soften its position. A draft law
was presented - this law would give the Egyptian central bank the right to implement laws precisely regulating the cryptocurrency industry in this country.
According to one of the bank employees, the new law will introduce special provisions for electronic transactions and payments, which, at the same time, will also apply to electronic bills and their distribution. The management of the Egyptian central bank will acquire the right to regulate the rules and all procedures related to the aforementioned activities.