Egypt Compliance Report

Generated 2026-09-22

No Guidance

Regulatory Overview

Regulatory Status: Regulators have not addressed crypto; legal status ambiguous
Key Regulator(s): Central Bank of Egypt, Financial Regulatory Authority, Egyptian Tax Authority
Primary Legislation: Article 206 of Law No. 194 of 2020 prohibits the issuance or trading of cryptocu, Anti-Money Laundering Law, Executive Regulations of Law No. 80/2002, The Banking and Central Bank Law, Central Bank and Banking Sector Law No. 194 of 2020, Article 206, Egypt Law 194 of 2020 crypto., Law No. 194 of 2020, This is the primary law governing banking and payment systems in Egypt, includin, FRA Decree 171 2023 Egypt, and its Executive Regulations, This law, along with subsequent amendments and executive regulations, forms the, not direct law link, U.S. citizens, permanent residents, entities organized under U.S. law, and anyone within the U.S., CBE Law 194/2020, CBE Law
Travel Rule: Adopted — Threshold: $1,000
Tax Reporting: Law No. 194 of 2020 (Central Bank and Banking Sector Law): Article 206 explicitly states that "issuing, trading, or promoting cryptocurrencies or transacting in them is prohibited within Egypt without a license from the Board of Directors of the Central Bank of Egypt." As of now, no such licenses have been granted, making these activities generally illegal within the formal financial system.. Dar al-Ifta al-Masriyyah (Egypt's official religious authority): Issued a religious decree (fatwa) in 2018 declaring cryptocurrency trading as impermissible (haram) under Islamic law, citing its speculative nature and associated risks. While not a tax law, this further shapes public and governmental perception.. No Specific Crypto CGT: Egypt does not have a specific capital gains tax for cryptocurrency.. Securities: A 10% capital gains tax applies to profits from the disposal of Egyptian-listed securities. This does not apply to cryptocurrencies as they are not recognized as securities on the Egyptian Exchange (EGX).. Real Estate: Capital gains from the disposal of real estate are subject to a 2.5% flat tax on the gross disposal value. This is clearly not applicable to crypto.

Key Facts

aml The Financial Regulatory Authority (FRA) — الهيئة العامة للرقابة المالية — is the main regulator for non-bank financial activities in Egypt, including capital markets, insurance, and non-bank financing, with its official website at fra.gov.eg (الهيئة العامة للرقابة المالية – نبني الجسور لا الحواجز). The FRA has an Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) System webpage dedicated to combating money laundering and terrorist financing, indicating its role in AML oversight of non-bank financial entities (AML/CFT System – الهيئة العامة للرقابة المالية). The FRA publishes an Authority Legislative Portal with categories including "Anti-Money Laundering and Counter-Terrorist Financing Legislations," confirming it maintains AML/CFT legal instruments for entities under its supervision (Capital Market – الهيئة العامة للرقابة المالية). The FRA maintains FinTech Legislations as a separate legislative category within its portal, suggesting it is actively developing frameworks for financial technology activities (Knowledge Bank – الهيئة العامة للرقابة المالية). Egypt's legal framework for AML/CFT is anchored in laws and regulations administered and enforced by the FRA for non-bank financial activities, with a dedicated section on the FRA's website titled "منظومة مكافحة غسل الأموال وتمويل الإرهاب" (AML/CFT System) (AML/CFT System – الهيئة العامة للرقابة المالية). The FRA publishes Capital Market Legislations as a primary legal category, which would govern any securities-related digital asset activities, though no specific crypto-asset law is referenced (Capital Market – الهيئة العامة للرقابة المالية). The Non-Bank Financial Activities Legislations category covers financing activities and would apply to any non-bank entity seeking to offer digital financial services outside the banking system (Knowledge Bank – الهيئة العامة للرقابة المالية). The FinTech Legislations category on the FRA's website suggests ongoing development of financial technology rules, but source material does not specify a dedicated virtual asset law (Capital Market – الهيئة العامة للرقابة المالية).
enforcement Legal Basis: Article 206 of Law No. 194 of 2020 (the Central Bank and Banking Sector Law) explicitly states: "It is prohibited to issue cryptocurrencies or trade them, or promote them, or establish or operate platforms for their trading, or to carry out activities related to them without obtaining a license from the Board of Directors of the Central Bank in accordance with the rules and conditions determined by it." Legal Basis: The FRA issued Decree No. 171 of 2023 "Regarding the Rules for the Establishment and Licensing of Companies to Practice Non-Banking Financial Activities Using Digital Technology." This framework focuses on digital assets that qualify as financial instruments (e.g., tokenized securities, tokenized bonds, NFTs representing fractional ownership in real assets or funds).
general Central Bank of Egypt (CBE): This is the primary regulatory body responsible for monetary policy, banking supervision, and the payment system. The CBE has taken the lead in prohibiting crypto-related activities within the financial sector. Website: Central Bank of Egypt Financial Regulatory Authority (FRA): The FRA regulates non-banking financial markets and instruments (e.g., capital markets, insurance, factoring). While its primary focus is not crypto given the CBE's stance, it has issued warnings about the risks associated with virtual assets. If any form of security token or regulated virtual asset product were ever to be considered in the future, the FRA would likely be involved. Website: Financial Regulatory Authority Al-Azhar Al-Sharif: While not a government regulatory body, Al-Azhar, Egypt's highest Sunni Islamic authority, issued a fatwa (religious edict) in 2018 declaring cryptocurrency trading as haram (forbidden) under Islamic law due to its perceived volatility, anonymity, and speculative nature, which further influences public and governmental sentiment. Central Bank and Banking System Law No. 194 of 2020 (Issued September 2020): This law explicitly prohibits the issuance, trading, or promotion of cryptocurrencies and the establishment or operation of platforms for such activities without a license from the Central Bank of Egypt. Article 206 of the law states: "It is prohibited to issue, trade, or promote cryptocurrencies, or to establish or operate platforms for their trading, or to carry out activities related thereto, without obtaining a license from the Board of Directors of the Central Bank in accordance with the rules and procedures specified thereby."
licensing Article 206 of Law No. 194 of 2020 prohibits the issuance or trading of cryptocurrencies, or the establishment or operation of platforms for their trading, or conducting any related activities, without a license from the Board of Directors of the Central Bank. Given that the CBE has not issued any such licenses, and has reiterated its warnings, this effectively means that the activities typically performed by VASPs (exchanges, custodians, etc.) are prohibited in Egypt. Law No. 80 of 2002 (Anti-Money Laundering Law), as amended: This is the primary AML/CFT legislation in Egypt. Prime Minister's Decree No. 164 of 2020 (Executive Regulations of Law No. 80/2002): Provides detailed rules for the implementation of the AML Law. Identification and Verification: Identifying the customer and verifying their identity using reliable, independent source documents, data, or information. This includes individuals, legal persons, and legal arrangements. Beneficial Ownership: Identifying the beneficial owner(s) of the customer and taking reasonable measures to verify their identity. Purpose and Nature of Business: Understanding the purpose and intended nature of the business relationship or transaction. Ongoing Monitoring: Conducting ongoing due diligence on the business relationship and scrutinizing transactions undertaken throughout the course of that relationship to ensure that the transactions are consistent with the financial institution's knowledge of the customer, their business, and risk profile.
sanctions The Central Bank of Egypt (CBE) is the primary financial regulator, with authority under its laws and regulations, published at CBE Overview, but it has not published any virtual asset-specific regulation on that page. Egypt is not subject to comprehensive U.S. sanctions; however, U.S. exporters must comply with the Export Administration Regulations (EAR) (15 CFR Parts 730–774) administered by the Bureau of Industry and Security (BIS) Egypt - U.S. Export Controls. The United Kingdom's financial sanctions regime for Egypt was withdrawn effective 23:00 on 31 December 2020, replaced by the UK's Misappropriation of State Funds sanctions regime Withdrawn Financial sanctions, Egypt - GOV.UK. The European Union revoked its sanctions framework for Egypt on 12 March 2021 and delisted 9 individuals, ending EU-wide restrictions specific to Egypt Egypt: EU revokes sanctions framework and delists 9 people - Consilium. No Egyptian government body has published a dedicated framework for virtual assets, and no licensing regime for crypto service providers is listed in the CBE's published regulations CBE Overview. No Egyptian regulator—including the CBE—has established a licensing process for cryptocurrency exchanges, custodians, or virtual asset service providers, as no such framework appears in published regulations CBE Overview. Zero entities have been licensed to conduct crypto-related activities in Egypt; no licensing authority or approved list exists in public sources. BIS licenses are required for U.S. exports of dual-use goods, software, and technology to Egypt under the EAR, but this applies to U.S. exporters, not Egyptian crypto businesses Egypt - U.S. Export Controls.
securities The Egyptian government has taken steps to regulate cryptocurrencies and digital assets through the Financial Regulatory Authority (FRA) and other bodies, aiming to provide clarity on licensing, AML/KYC obligations, and tax treatment. However, significant gaps remain in the regulatory framework, posing risks for market participants and necessitating further legislative action to ensure compliance and investor protection. The Financial Regulatory Authority (FRA) oversees the licensing and supervision of financial institutions involved in digital asset trading. Egypt's securities market is governed by the Egyptian Exchange (EGX), which lists traditional securities but has yet to formally incorporate cryptocurrencies into its regulated asset class. Entities seeking to operate in the digital asset space must obtain licenses from the FRA, which involves meeting capital adequacy and anti-money laundering (AML) standards. The recent rollout of a Track License Portal by the Egyptian government aims to streamline the licensing process for investment platforms. Digital asset service providers are required to implement robust AML and KYC procedures, aligning with international standards as outlined by the Financial Action Task Force (FATF). The FRA mandates regular reporting and monitoring of suspicious transactions, emphasizing the importance of customer due diligence.
status The Egyptian government has taken steps to regulate cryptocurrencies through the Financial Sector Reform and Development Authority (ERRADA), which is tasked with overseeing financial market reforms, including those related to digital assets. ERRADA | Homepage Egypt's AML/CFT System, overseen by the General Authority for Financial Regulation (GAFI), implements anti-money laundering and counter-terrorism financing measures that indirectly affect cryptocurrency activities. AML/CFT System – الهيئة العامة للرقابة المالية Egypt has not yet issued specific licenses for cryptocurrency exchanges or digital asset service providers. However, the country is piloting a unified investment licensing platform that could potentially include digital assets in the future. Egypt Rolls Out Pilot of Track License Portal: A Unified Investment Licensing ePlatform The Ministry of Investment (MOI) and ERRADA are responsible for overseeing the licensing process, which currently focuses on traditional financial services but may expand to cover digital assets as regulations evolve. Egypt - Licensing Requirements Cryptocurrency-related businesses must comply with Egypt's AML/CFT regulations, which require robust customer due diligence and ongoing monitoring of transactions to prevent money laundering and terrorist financing. GAFI publishes step-by-step guide to Egypt's Investment Licensing Platform Income derived from cryptocurrency transactions is subject to personal income tax in Egypt, with rates varying based on the type of income. Expat residents must also comply with Egyptian tax laws as outlined in the expatriate tax guide. Expat Tax Guide for Americans Living in Egypt The overall tax treatment remains unclear due to the lack of specific guidance on digital assets, necessitating further regulatory clarity from Egyptian authorities. Egypt Tax Guide Regulatory Ambiguity: The absence of explicit cryptocurrency regulations poses significant risks for market participants, who may face legal uncertainties.
tax Law No. 194 of 2020 (Central Bank and Banking Sector Law): Article 206 explicitly states that "issuing, trading, or promoting cryptocurrencies or transacting in them is prohibited within Egypt without a license from the Board of Directors of the Central Bank of Egypt." As of now, no such licenses have been granted, making these activities generally illegal within the formal financial system. Dar al-Ifta al-Masriyyah (Egypt's official religious authority): Issued a religious decree (fatwa) in 2018 declaring cryptocurrency trading as impermissible (haram) under Islamic law, citing its speculative nature and associated risks. While not a tax law, this further shapes public and governmental perception. No Specific Crypto CGT: Egypt does not have a specific capital gains tax for cryptocurrency. Securities: A 10% capital gains tax applies to profits from the disposal of Egyptian-listed securities. This does not apply to cryptocurrencies as they are not recognized as securities on the Egyptian Exchange (EGX). Real Estate: Capital gains from the disposal of real estate are subject to a 2.5% flat tax on the gross disposal value. This is clearly not applicable to crypto. Practical Reality: Since cryptocurrencies are not legally recognized as assets within the formal financial system, and no specific tax framework exists, individuals are not expected to declare or pay capital gains tax on crypto profits. Any attempt to do so would contradict the CBE's prohibition. No Specific Crypto Income Tax: There is no specific income tax legislation for cryptocurrency in Egypt. General Income Tax Law (Law No. 91 of 2005): This law governs individual and corporate income tax.
travel rule Not explicitly adopted or effective for licensed VASPs. Egypt's primary legal framework, Law No. 194 of 2020 (the Central Bank and Banking Sector Law), effectively prohibits the issuance, trading, or promotion of cryptocurrencies and other virtual assets without a specific license from the Central Bank of Egypt (CBE). Article 206 of Law No. 194 of 2020 states: "It is prohibited to issue, trade, or promote cryptocurrencies or deal in them or create or operate platforms for their trading without obtaining a license from the Board of Directors of the Central Bank in accordance with the rules and procedures specified thereby." As of now, the CBE has not issued a comprehensive licensing framework for VASPs to operate exchanges or provide other virtual asset services. Therefore, a legally operating VASP sector that would be subject to Travel Rule implementation does not exist in practice. Not defined. Since there is no operational licensing framework for VASPs, specific threshold amounts for the Travel Rule (which typically apply to transactions exceeding a certain value, e.g., $1,000/€1,000) have not been established for virtual asset transfers in Egypt. Hypothetically, all VASPs would be covered if a licensing framework were established. However, due to the prohibitive nature of the current law, there are no legally recognized VASPs operating in Egypt that would be required to implement the Travel Rule. The law aims to prevent their operation without prior CBE authorization. Not specified. Given the absence of a licensing regime and Travel Rule adoption for VAs, there are no technical implementation requirements (e.g., use of specific messaging protocols like TRISA, OpenVASP, etc.) mandated for VASPs in Egypt. Article 217 of Law No. 194 of 2020 stipulates: "Anyone who violates the provisions of Article (206) of this Law shall be punished by imprisonment for a period of not less than three years and not exceeding ten years, and a fine of not less than one million Egyptian pounds and not exceeding ten million Egyptian pounds, or one of these two penalties."

Sources

This report is AI-generated from publicly available regulatory sources. Last updated: 2026-09-22. View full profile