Is crypto legal in Egypt? Rules & regulation (2026)

Legal framework

Central Bank and Banking System Law No. 194 of 2020, Article 206, enforced by the Central Bank of Egypt (CBE); supplementary AML/CFT framework under Law No. 80 of 2002 (as amended by Prime Ministerial Decree No. 3331/2023) administered by the Egyptian Money Laundering and Terrorist Financing Combating Unit (EMLCU)

Status by sub-area

• Stablecoins

  None

  Egypt has no stablecoin-specific authorization regime; fiat-referenced stablecoins fall under the same general Article 206 prohibition on virtual currencies. Only the CBE-piloted sovereign CBDC (E-Pound) is being developed as a regulated digital fiat instrument.

• Exchanges / VASP

  None

  Operating a crypto exchange or VASP in Egypt requires prior CBE licensing under Article 206 of Law 194/2020, but no such licenses have ever been issued. AML obligations under Decree 3331/2023 extend to VASPs in principle, but in practice exchanges are not lawfully permitted to operate.

• Token Offerings

  None

  There is no securities-law pathway or prospectus regime for token offerings; issuing any cryptocurrency or digital asset without CBE approval is prohibited by Article 206 and the FRA has not issued an STO/utility-token framework.

• Custody

  None

  Egypt has no qualified-custodian or safeguarding regime for client crypto assets; offering crypto custody is not licensed and falls within the Article 206 prohibition on operating crypto platforms.

• DeFi

  None

  Egypt has issued no dedicated DeFi rules; decentralized protocols, DAOs and front-ends are not addressed in legislation but are swept into the general Article 206 prohibition on operating platforms for crypto transactions, with enforcement focused on warnings and criminal liability for participants.

• Tax

  None

  Egypt has no dedicated tax regime for cryptocurrency: the Egyptian Tax Authority has issued no guidance, there is no return line for crypto gains, and VAT/income treatment is unaddressed because crypto activity itself is unlawful under Article 206 of Law 194/2020.

Key points: crypto & digital assets in Egypt

1. 01Statutory prohibition

   Article 206 of Law 194/2020 bans issuing, trading, promoting, or operating platforms for cryptocurrencies/electronic currencies without prior CBE licensing; no implementing rules permitting these activities have been issued.

   lexology.com eg.andersen.com

2. 02Criminal penalties

   Violations carry imprisonment and fines of EGP 1 million up to EGP 10 million (≈USD 320,000), making crypto activity a criminal rather than tax matter.

   youssrysaleh.com lexology.com

3. 03Regulator warnings

   Both the CBE (in successive 2018, 2021 and 2022 statements) and the Financial Regulatory Authority (FRA) have publicly warned against trading or promoting virtual assets, citing fraud, AML/CFT and consumer-protection risks.

   egypttoday.com laraontheblock.com

4. 04Religious ruling

   Egypt's Dar al-Ifta, through Grand Mufti Shawky Allam, issued a non-binding fatwa in December 2017 declaring trading in Bitcoin and similar cryptocurrencies haram under Islamic law, citing volatility, lack of state backing and potential terror-finance use.

   egyptindependent.com islamiclaw.blog

5. 05AML/CFT coverage of VASPs

   Prime Ministerial Decree No. 3331 of January 2023 amended the executive regulations of AML Law 80/2002 to extend reporting obligations to virtual-asset service providers and fintech firms, aligning with FATF Recommendation 15; the EMLCU is the supervising FIU.

   fatf-gafi.org cbe.org.eg

6. 06Sovereign CBDC instead of crypto

   The CBE is exploring a retail Central Bank Digital Currency (E-Pound) under a 2024–2030 roadmap, explicitly framed as an alternative meant to discourage private cryptocurrency use; cooperation on CBDCs was added to a July 2025 agreement with the People's Bank of China.

   atlanticcouncil.org coingeek.com

Timeline of decisions

1. 12 May 2025Guidance
   FRA renews public warning against crypto dealing amid ad surge

   Egypt's Financial Regulatory Authority issued a fresh warning against trading or investing in cryptocurrencies after a rise in local online ads, reiterating that the assets lack legal backing and could be used in fraud, money laundering and terror financing. It reaffirmed that Law 194 of 2020 criminalizes such activity and urged citizens to report it.

   AGBI

2. 30 Mar 2023Enforcement · official
   Authorities arrest 29 over fraudulent crypto investment scheme

   Egyptian prosecutors announced the arrest of 29 people accused of running an unlicensed cryptocurrency investment scheme that defrauded the public, illustrating active enforcement of the crypto prohibition. The case underscored official concern about crypto-linked fraud.

   U.S. Library of Congress (Global Legal Monitor)

3. 8 Mar 2023Guidance · official
   CBE issues fourth warning statement on cryptocurrencies

   The Central Bank of Egypt reiterated that dealing in all types of crypto assets, by individuals, companies, apps or platforms, is prohibited and that no license has ever been granted under Law 194 of 2020. It cited extreme price volatility and illicit-use risks.

   Central Bank of Egypt

4. 12 Sept 2022Guidance · official
   CBE Issues Third Formal Warning Statement Against Cryptocurrency

   The CBE renewed its statutory warning against cryptocurrency dealing, citing extreme price volatility, use in financial crimes and electronic piracy, and the complete absence of any official governmental guarantee — and confirming that no crypto licences had been issued under Law 194/2020.

   Central Bank of Egypt

5. 1 Aug 2022Guidance
   CBE signals plans for an 'e-Pound' CBDC, targeting 2030

   In its financial stability report the Central Bank of Egypt confirmed work on a central bank digital currency (the e-Pound) and e-KYC, later set for a 2030 launch tied to financial-inclusion goals, positioned partly to head off private cryptocurrency adoption. A first feasibility-study phase was completed by 2024.

   Digital Pound Foundation

6. 1 Jan 2021Guidance · official
   CBE Issues Second Warning Against Cryptocurrency, Reinforcing Law 194/2020

   Following the enactment of the Banking Sector Law, the CBE issued a second public advisory reiterating that cryptocurrency dealing is now explicitly prohibited by statute, that no licences had been granted, and that violators face criminal prosecution — the first post-statute warning campaign.

   State Information Service, Egypt

7. 1 Jan 2021Guidance
   CBE reiterates warning that crypto are not legal currencies

   The Central Bank of Egypt repeated its position that crypto assets are not currencies because they are not issued by any official authority and have no legal backing, warning that losses from trading would not be recoverable under Egyptian law. The statement reinforced the framework set by Law 194 of 2020.

   Andersen Egypt

8. 16 Sept 2020Law
   Central Bank and Banking Sector Law No. 194/2020 Enacted — Article 206 Codifies Crypto Ban

   Egypt's landmark banking reform law replaced the 2003 CBE Act and for the first time enshrined the crypto prohibition in statute. Article 206 explicitly bans the issuance, trading, promotion, or platform-operation of cryptocurrencies without prior CBE approval, with criminal penalties up to EGP 10 million and imprisonment.

   Matouk Bassiouny (summary of Law No. 194/2020)

9. 1 Sept 2020Law
   Banking Law 194 of 2020 criminalizes crypto without a CBE license

   Egypt's Central Bank and Banking System Law No. 194 of 2020, via Article 206, prohibits issuing, trading, promoting or operating platforms for crypto assets and e-money without a CBE license, establishing the de facto ban that still governs the country. Penalties include imprisonment and fines up to EGP 10 million.

   Egypt Today

10. 10 Jan 2018Guidance · official
    Central Bank of Egypt issues first formal crypto warning

    The CBE published a 'Warning Statement' cautioning the public against trading cryptocurrencies such as Bitcoin, citing extremely high risk and lack of legal protection, its first formal public stance, predating the 2020 statutory ban. It set the tone for repeated warnings in following years.

    Central Bank of Egypt

11. 1 Dec 2017Guidance
    Dar al-Ifta declares cryptocurrency trading haram

    Egypt's top Islamic authority, Dar al-Ifta, issued a fatwa by Grand Mufti Shawki Allam ruling that buying, selling and trading Bitcoin is forbidden under Sharia, likening it to gambling and citing risks to financial stability and potential terror financing. Though non-binding, the ruling shaped public sentiment and the state's restrictive approach.

    Egypt Independent

12. 23 Aug 2017Decision
    CBE Official Publicly Declares Egypt Will Not Allow Cryptocurrency

    A senior Central Bank of Egypt official made the first explicit public policy statement that Egypt had no intention of permitting cryptocurrency, framing the CBE's position months before the formal warning bulletin and setting the regulatory trajectory that would be codified in Law 194/2020.

    Daily News Egypt

Sources

1. 1.lexology.com/library/detail.aspx?g=a21a3371-3157-4c46-8ab2-1e15e9a59450
2. 2.eg.andersen.com/legality-cryptocurrency-in-egypt/
3. 3.youssrysaleh.com/en/cryptocurrency-legality-in-egypt/
4. 4.egypttoday.com/Article/3/100224/Egypt-s-central-bank-prohibits-issuing-cryptocurrenc
5. 5.laraontheblock.com/egyptian-financial-regulator-warns-against-investing-in-crypto-again/
6. 6.egyptindependent.com/egypts-dar-al-iftaa-deems-bitcoin-currency-forbidden-islam/
7. 7.fatf-gafi.org/en/countries/detail/Egypt.html
8. 8.cbe.org.eg/en/aml-cft/egyptian-fiu
9. 9.atlanticcouncil.org/cbdctracker/
10. 10.freemanlaw.com/cryptocurrency/egypt/
11. 11.islamiclaw.blog/2022/05/05/fatwas-on-cryptocurrency-egypts-dar-al-ifta%CA%BE/
12. 12.coingeek.com/egypt-eyes-cbdc-launch-by-2030/