Egypt's Stance on Cryptocurrency: From Ban to Global Policy Interpretation

Does Egypt support cryptocurrencies? The answer is no. As a significant economy in the North African region, Egypt has taken a resolute restrictive approach to cryptocurrencies. In fact, Egypt is not an isolated voice – globally, more than 50 countries and regions have implemented varying degrees of regulatory policies on cryptocurrencies.

Egypt’s explicit ban on cryptocurrencies

Egypt is one of nine countries in the world that have an absolute ban on cryptocurrencies. This means that producing, holding, trading, and using cryptocurrencies are strictly prohibited in Egypt. Egypt shares the position of Algeria, Bangladesh, China, Iraq, Morocco, Nepal, Qatar and Tunisia. These countries are characterized by a “zero tolerance” policy towards cryptocurrencies, which does not allow any form of legal trading or holding.

Two categories of global cryptocurrency policy

In addition to countries with absolute bans like Egypt, there are 42 other countries and regions around the world that have adopted implicit ban strategies. Although such policies do not explicitly prohibit cryptocurrencies themselves, they achieve de facto restrictions by restricting banks and financial institutions from participating in crypto business and prohibiting exchanges from operating domestically. Countries such as Kazakhstan, Tanzania, Cameroon, Turkey, Lebanon, the Central African Republic, the Democratic Republic of the Congo, Indonesia, Bolivia and Nigeria have adopted this indirect but effective approach to control.

Policy considerations behind bans in various countries

Egypt and other countries restricting cryptocurrencies have adopted these drastic measures mainly due to various policy considerations. The first is financial stability – the volatility of cryptocurrencies can pose risks to a country’s financial system. The second is monetary sovereignty protection, with central banks fearing that cryptocurrencies pose a threat to their fiat currencies. In addition, capital controls, anti-money laundering and counter-terrorist financing are also important factors. Some countries are also concerned about the social problems and waste of resources that cryptocurrencies may bring. These multidimensional considerations have driven governments to adopt corresponding regulatory policies.

At present, Egypt and most countries around the world that have adopted bans have not changed their basic position. These policies reflect the cautious attitude of countries in the digital economy era and the balance between financial security and economic sovereignty.