Egypt’s New Banking Law bans crypto currency issuance without license

The new Banking Law prohibits the establishment or operation of platforms for issuing or trading encrypted currency or electronic money or its promotion without obtaining the necessary licenses in advance, according to an official source.

The official source  at Central Bank of Egypt told Middle East News Agency that the new draft Law which is currently being concluded gave the board of directors of the CBE the right to issue rules of regulation and circulation and dealing with the type of currency and money.

He explained that the new draft law has given great importance to financial technology in line with the major developments in the banking industry in the world and to promote the use of modern technology in the provision of financial and banking services.

According to the source, the new law added legal authority to the electronic authentication of bank transactions and electronic payment orders, and orders of transfer and accepting their necessary conditions and provisions, as well as the electronic settlement of cheques and the issuance and circulation of electronic cheques and electronic discount orders.

The source pointed out that such electronic means would have the same originality as those of the editors in proving the technical criteria set by the CBE’s board of directors, as well as the legalisation of the electronic documents relating to banking transactions and payment services if they meet the technical criteria established by the board.

He added that the draft law provides for the establishment of a regulatory control environment for applications of financial and control technology, facilitating licensing procedures for start-ups that test financial and regulatory technology in order to provide innovative financial services, and define controls for electronic applications that allow access to customer accounts.