Embargo placed on cryptocurrency firms in Egypt may be lifted soon.
Egypt had in the past banned all cryptocurrency under Islamic law, however, a new report has revealed that the North African country has decided to rescind on this by loosening the noose with a new bill which will ensure that the creation, trading, or promotion of cryptocurrencies without adequate license, are not allowed.
Recall that the Grand Mufti of Egypt, Shawki Allam, who issued the ban early 2018, said the technology could weaken the legal system by encouraging tax evasion, money laundering, and other fraudulent activities.
The Grand Mufti also cited his reservations with crypto’s volatility and scams.
However, with the recent increase in the use of crypto currency in neighboring countries, Egypt has begun exploring the technology.
The bill would give members of the Board of directors of the Central Bank of Egypt (CBE) the right to regulate cryptocurrencies.
To do this, multiple potentially expensive licenses would be required before such firms can be allowed to resume operation.
The report reads:
“The new law provides legal authority for the electronic authentication of bank transactions, electronic payment orders, and transfer orders as well as for the electronic settlement of checks and the issuance and circulation of electronic checks and electronic discount orders, provided that Board of Directors of CBE issue rules and procedures regulating all the aforementioned actions.”
Cryptocurrency growth in Africa has been slow, with many nations like Egypt believing it is not yet time to embrace the technology, however this move by Egypt will encourage other nations alike, to embrace cryptocurrency.
Note that, the draft bill has not yet been made available for public reading.