Central Bank of Egypt Crypto Prohibition and Enforcement in 2025

Since 2020, the Central Bank of Egypt (CBE) has enforced one of the strictest cryptocurrency bans in the Middle East. Under Law No. 194/2020, it’s illegal to issue, trade, or promote any cryptocurrency in Egypt without the CBE’s approval. That approval doesn’t exist. Not for Bitcoin. Not for Ethereum. Not for any altcoin. The law doesn’t just discourage crypto-it shuts the door completely.

It’s not just a rule. It’s a system. The CBE doesn’t just say "don’t do it." It actively warns Egyptians every year that crypto is dangerous, unpredictable, and a threat to the country’s financial stability. These aren’t vague statements. They’re repeated in official press releases, bank branches, and even on state media. The message is clear: if you trade crypto in Egypt, you’re breaking the law.

Why Did Egypt Ban Crypto?

The reasons aren’t just about control-they’re about survival. Egypt’s economy is fragile. The Egyptian pound has lost nearly half its value against the U.S. dollar since 2022. Inflation hit over 35% in 2024. The CBE fears that if millions of Egyptians started moving their savings into Bitcoin or other cryptocurrencies, it could trigger a bank run. People might pull cash out of banks to buy crypto, draining the system of liquidity. That could crash the pound even faster.

There’s also the religious angle. In 2018, Egypt’s top Islamic scholars issued a fatwa declaring cryptocurrencies haram-forbidden under Islamic law. The reasoning? They’re not backed by any asset, they’re volatile, and they enable anonymous transactions that could fund illegal activity. This wasn’t just a suggestion. It became part of the cultural backdrop. For many Egyptians, crypto isn’t just illegal-it’s morally wrong.

The CBE didn’t just rely on one tool. It layered legal, religious, and economic arguments to build a wall around crypto. And for years, that wall held.

How Is the Ban Enforced?

Here’s the problem: enforcement is messy.

Technically, the CBE has the power to shut down banks, freeze accounts, and fine individuals who trade crypto. But there’s no public record of anyone being prosecuted for buying Bitcoin. No court cases. No headlines about arrests. No fines published. The U.S. State Department’s 2025 report on Egypt’s investment climate admits that while the ban is clear on paper, enforcement is "unclear."

Why? Because crypto doesn’t play by traditional rules. You don’t need a bank to send Bitcoin. You don’t need a passport to use a peer-to-peer app. A teenager in Alexandria can buy crypto from someone in Istanbul using WhatsApp and a digital wallet. The CBE can’t track every transaction. It can’t monitor every phone. And it doesn’t have the resources to chase every user.

So what does enforcement look like? Mostly, it’s warnings. The CBE issues annual statements reminding banks not to process crypto-related payments. It tells payment processors to block transactions linked to exchanges. It pressures mobile app stores to remove crypto wallet apps from the Egyptian market. But if someone uses a VPN, a foreign exchange, and a non-Egyptian bank account? There’s little the CBE can do.

That’s why crypto still moves in Egypt. It’s underground. It’s quiet. But it’s there.

Blockchain? That’s a Different Story

Here’s the twist: Egypt doesn’t hate technology. It just hates uncontrolled money.

While crypto is banned, blockchain-the underlying technology-is being actively adopted. The Egyptian Customs Authority uses blockchain to track cargo shipments through its Advanced Cargo Information (ACI) system. It cuts fraud, reduces delays, and increases transparency. No one’s trading Bitcoin here. But the ledger is secure, immutable, and government-run.

Other government projects are exploring blockchain for land registries, supply chain tracking, and digital identity systems. The Ministry of Finance is testing blockchain-based payroll for public workers. The Central Bank is even researching its own Central Bank Digital Currency (CBDC)-a digital version of the Egyptian pound, fully controlled by the state.

This isn’t hypocrisy. It’s strategy. Egypt wants the benefits of digital innovation without the risks of decentralized finance. It’s okay to use blockchain to make customs faster. It’s not okay to let people bypass the banking system with anonymous tokens.

What Happens If You Get Caught?

No one knows for sure.

Law No. 194/2020 gives the CBE broad powers to penalize violations, but it doesn’t specify exact fines or jail terms. There’s no public list of penalties. That’s intentional. The CBE wants uncertainty to act as a deterrent. If you don’t know if you’ll get fined, jailed, or just ignored, you’re less likely to try.

Some reports suggest that banks may freeze accounts linked to crypto transactions. Others say foreign crypto exchanges have been pressured to block Egyptian IP addresses. But again-no arrests. No convictions. No court cases.

For most Egyptians, the real penalty isn’t legal-it’s social. If you’re caught trading crypto, your bank might flag you. Your family might worry. Your friends might stop asking you about it. The stigma is real. And for many, that’s enough.

Is the Ban Working?

It’s not about stopping everyone. It’s about stopping the majority.

There’s no official data on how many Egyptians hold crypto. But estimates from blockchain analytics firms suggest between 3% and 7% of the population has some exposure-mostly young, urban, tech-savvy users. That’s a small fraction compared to countries like Nigeria or Vietnam, where crypto adoption is mainstream.

Why? Because Egypt’s ban works as a cultural and institutional barrier. Banks won’t help you. Apps are blocked. Ads are banned. Even crypto influencers get taken down by social media platforms under pressure from local authorities.

It’s not perfect. But it’s effective enough. Most Egyptians don’t see crypto as an option. They see it as a risk-not just financial, but legal and moral.

What’s Next for Egypt?

Don’t expect the ban to lift anytime soon.

The CBE has no plans to legalize crypto. The government isn’t lobbying for change. The religious authorities haven’t reversed their fatwa. And with inflation still high and currency controls tight, the state has too much to lose.

But the future isn’t about crypto. It’s about control. Egypt is building its own digital currency-the E-pound. It will be issued by the CBE, traceable, regulated, and mandatory for government payments. Citizens will use it through official apps. No anonymity. No decentralization. Just digital cash, under full state control.

That’s the real endgame. Not banning crypto because it’s bad. Banning it because the state wants to be the only one who can issue digital money.

For now, if you’re in Egypt, crypto remains illegal. The CBE says so. The law says so. The fatwa says so. And while enforcement is patchy, the system is designed to make it easier not to try.

And that’s exactly how the Central Bank of Egypt wants it.