Central Bank of Egypt Crypto Prohibition: What’s Banned and How It’s Enforced in 2025

Back in 2020, the Central Bank of Egypt (CBE) made it crystal clear: cryptocurrencies are not allowed in Egypt. Not trading. Not mining. Not promoting. Not even accepting as payment. Law No. 194/2020 turned every form of crypto activity into a legal gray zone - and in practice, a hard stop. Five years later, in 2025, that ban is still fully in place. No exceptions. No loopholes. No official recognition.

But here’s the twist: you can still find Egyptians trading Bitcoin on Telegram groups. You can still see local vendors accepting crypto on Instagram. And you can still hear whispers about crypto ATMs in Cairo’s shopping malls. So if it’s illegal, why does it still happen? And how is the CBE even trying to stop it?

What Exactly Is Banned Under Law No. 194/2020?

The law doesn’t just say "don’t trade Bitcoin." It shuts down the entire ecosystem. Any activity involving encrypted virtual currencies - including buying, selling, exchanging, promoting, or advertising them - requires explicit approval from the CBE. And the CBE has never granted that approval. Not once.

This means banks and payment processors can’t touch crypto. If you try to link your PayPal or local bank account to a crypto exchange, it’ll get blocked. If you run a business that accepts Bitcoin, you’re technically violating banking regulations. Even social media influencers who post "Buy Ethereum now!" could be flagged for illegal promotion.

What’s more, the ban isn’t just about money. In 2018, Egypt’s highest Islamic authority, Al-Azhar, issued a fatwa declaring cryptocurrencies haram - forbidden under Islamic law. That religious stance reinforced the legal ban, making crypto not just illegal, but morally questionable for millions of Egyptians. The combination of state law and religious guidance created a one-two punch that’s hard to ignore.

How Is the Ban Actually Enforced?

This is where things get fuzzy.

The CBE doesn’t have a crypto police force. It doesn’t raid homes or shut down exchanges like some countries do. Instead, it relies on control points - the financial system’s backbone. Banks are required to monitor transactions. If someone tries to send large sums to Binance or Kraken, the bank is supposed to freeze it and report it. But many users bypass this by using peer-to-peer (P2P) platforms, cash trades, or third-party intermediaries.

According to the U.S. State Department’s 2025 Egypt Investment Climate Statement, enforcement remains inconsistent. There are no public records of fines, arrests, or prosecutions related to crypto use. No major cases. No headlines. That doesn’t mean enforcement is nonexistent - it just means it’s quiet. And targeted.

The CBE’s main tool is warning. Year after year, they release official statements reminding the public that crypto is risky, unregulated, and illegal. They warn about scams, price crashes, and money laundering. They don’t say "we’ll arrest you." They say, "your money could disappear tomorrow." It’s a deterrence strategy - scare people away before they get in.

For most Egyptians, that’s enough. The average person doesn’t want to risk losing savings or getting tangled in legal trouble. So while crypto exists in the shadows, it hasn’t gone mainstream.

Why Does Egypt Hate Crypto So Much?

It’s not about being anti-technology. It’s about control.

Egypt’s economy is fragile. The Egyptian pound has lost more than 60% of its value since 2022. Inflation is over 35%. The government needs to manage the flow of foreign currency tightly - especially U.S. dollars. If people start using Bitcoin to send money abroad or avoid currency controls, it could destabilize the whole system.

Plus, the CBE doesn’t want competition. If people start trusting crypto more than the central bank, it weakens their authority. And in a country where trust in institutions is already low, that’s dangerous.

There’s also the fear of fraud. Egypt has seen waves of pyramid schemes disguised as crypto investments. People lose life savings. The government doesn’t want another wave of public anger over financial scams.

So the ban isn’t just about law - it’s about survival. Protecting the currency. Protecting the banks. Protecting the state’s ability to manage the economy.

But What About Blockchain? Isn’t That Different?

Yes. And that’s the key.

Egypt doesn’t hate technology. It hates speculation. That’s why the government is quietly building blockchain systems - just not for money.

At Egypt’s ports, the Advanced Cargo Information (ACI) system uses blockchain to track shipments. It cuts down on fraud, reduces delays, and makes customs faster. That’s a win for trade and revenue.

They’re also testing blockchain for land registration. Instead of paper records that can be lost or forged, property deeds are stored on a tamper-proof digital ledger. That’s smart. That’s useful.

Even remittance companies are exploring blockchain-based solutions to send money from Gulf countries back to Egypt - without using traditional banks. But here’s the catch: these systems don’t use Bitcoin or Ethereum. They use private, permissioned blockchains controlled by the government or approved financial institutions.

Egypt’s message is clear: we’re not against innovation. We’re against uncontrolled, decentralized money.

What’s Next for Crypto in Egypt?

Don’t expect the ban to lift anytime soon.

The CBE is actively exploring a Central Bank Digital Currency (CBDC) - a digital version of the Egyptian pound. If they roll one out, it’ll be fully controlled, traceable, and tied to the national economy. That’s the future they want: digital money, but under their rules.

Meanwhile, crypto traders will keep operating in the gray. Some will use VPNs. Others will trade cash in person. A few will get lucky. Many will get burned. But as long as the CBE holds control over banks and payment systems, crypto won’t go mainstream.

For now, Egypt’s strategy is working - not because it’s perfect, but because it’s consistent. Crypto is banned. Blockchain is welcomed. And the central bank is still in charge.

What Should You Do If You’re in Egypt?

If you’re living in Egypt and thinking about crypto:

• Don’t use local banks or payment apps to buy crypto - they’ll block you.
• Don’t promote crypto on social media - you could be reported.
• Don’t assume you’re safe just because no one’s been arrested - enforcement may be quiet, but it’s real.
• If you’re curious about blockchain, look into government-backed projects like ACI or land registry pilots - they’re legal and growing.

There’s no legal path to crypto in Egypt right now. The only safe option is to wait - and watch.