According to Tuesday’s report by Egypt Independent, the Central Bank of Egypt (CBE) has reissued its warning statement against all forms of cryptocurrencies, noting a number of hazards including extreme volatility, usage in financial crimes, and e-piracy. The ECB emphasised that neither the central bank nor any other governmental entity issues nor backs cryptocurrency.
As per the CBE statement, it is illegal to issue, trade, or promote cryptocurrencies, as well as to build or run platforms for cryptocurrency trading and engage in similar activities.
Whoever violates this is subject to imprisonment, a fine of at least £1,000,000 and no more than LE10,000,000 ($516,340), or all of these punishments, the bank noted.
The central bank was more concerned about the very purpose of crypto, which is being decentralized. However, it raised some genuine questions about accountability and the volatile nature of the market.
Cryptocurrencies, according to the central bank, lack the official governmental backing and support provided by fiat currencies issued by central banks. The bank further said that cryptocurrencies are not backed by any real assets like gold and are not appreciated by any global financial regulators.
In January 2018, Egypt’s Dar El-Ifta, the government’s main Islamic organisation for issuing fatwas (religious opinions), issued a decree claiming that all usage of cryptocurrencies, including buying, selling, and leasing, were haram, or forbidden.