The Central Bank of Egypt (CBE) has warned Egyptian citizens against dealing with encrypted virtual assets, cryptocurrencies, due to the risk. reported Independent of Egypt.
The bank recently issued a press release stating that it has been monitoring the cryptocurrency trading phenomenon on regional and international platforms.
The bank underlined several risks associated with cryptocurrency, viz. Significant price fluctuations and volatility, lack of regulation worldwide and lack of approval by central banks. Therefore, it is prudent for anyone to trade in high-risk assets such as cryptocurrencies in Egypt.
In Egypt, local law prohibits mining, trading or promoting cryptocurrencies, creating or using trading platforms, or performing related activities.
In the year In 2018, the main Islamic lawmaker in Egypt, Dar Al-Ifta, issued a religious decree declaring trading in Bitcoin as haram, which is prohibited by Islamic law..
In the year In 2020, financial laws in Egypt were strengthened to prevent the trading or promotion of crypto assets without the permission of the central bank.
Top cryptocurrency trading in Egypt
However, many Egyptians are dabbling in cryptocurrencies, including Bitcoin. 2021 study at Triple A It claims that more than 1.7 million people, 1.8% of Egyptians, own cryptocurrency. In the year In 2020, Egypt saw over 2.2 million Egyptian pounds of peer-to-peer Bitcoin transactions.
as if Discussion With Al Monitor’s Mohamed Abd El Basir, A leading member of the Bitcoin Egypt community said there is a sign of high demand for Bitcoin mining and trading in the country.
“The increase in the number of Bitcoin miners and traders is a global phenomenon that is one of the many reasons for the increase in the demand for bitcoins, and by extension the increase in the value of the currency itself. This has allowed people who got it at a lower price last year or in the first months of this year to make unprecedented profits; Many Egyptians are also looking at these levels of profits by investing in cryptocurrencies.