The Central Bank of Egypt (CBE), has issued a new warning about cryptocurrency. It noted that anyone who violates this law could be subject to imprisonment. The law of the Egyptian central bank "prohibits issuing or trading cryptocurrencies or promoting them, creating or operating platforms to trade it or engaging in related activities."
Egypt's Central Bank Issues Crypto Warning
Egypt Independent reported Tuesday that the Central Bank of Egypt (CBE), has renewed its warnings about all types of cryptocurrency. They cited a number of risk factors, including high volatility and use in financial crimes. The ECB stressed that crypto is neither issued nor backed by any central bank or other official authority.
"In the same context the Law of the Central Bank of Egypt & the Banking System — promulgated under Law No. 194 of 2020 — prohibits issuing or trading cryptocurrencies, creating or operating platforms to trade them, or engaging in related activities." The CBE statement states:
This law is to be broken and the violators will be sentenced and fined not less than one million pounds, but no more than LE10million [$516,340], respectively.
In January 2018, the Egyptian central bank issued a similar warning regarding cryptocurrency, specifically naming Bitcoin.
It is important to remember that cryptocurrency is not issued by any central banks or official central issuing authorities that can be held responsible.
"Moreover, cryptocurrencies cannot be backed by tangible assets and are not monitored by any regulators around the world, and as such, they lack official governmental support and guarantee like the other official currencies issued central banks," the central banking added.
Dar El-Ifta in Egypt, the principal Islamic institution that issues fatwas (religious opinions), issued an order in January 2018 declaring that all cryptocurrency uses were prohibited. This included selling, buying, and leasing.
What are your thoughts on the Central Bank of Egypt's crypto warning? Comment below.
By: Kevin Helms
Title: Egypt’s Central Bank Issues Crypto Warning — Violators Risk Imprisonment
Sourced From: news.bitcoin.com/egypts-central-bank-issues-crypto-warning-violators-risk-imprisonment/
Published Date: Thu, 15 Sep 2022 01:30:23 +0000
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