Last Update 0:4
Wednesday, 12 December 2018

Egypt's Financial Regulatory Authority issues cryptocurrency warning

Ahram Online , Tuesday 19 Dec 2017
Egypt’s Financial Regulatory Authority (FRA) Mohamed Omran (Photo: Al-Ahram)
Views: 4351
Views: 4351

Egypt’s Financial Regulatory Authority (FRA) said on Tuesday that enticing investors into dealing with cryptocurrencies is considered a “form of deception that falls under legal liability.” 

FRA head Mohamed Omran has warned of calls to invest in crypotcurrencies, highlighting the fact that such dealings are not regulated by any official body in Egypt and are not part of the monetary authority.

The FRA statement said Omran had cited the Egyptian stock market and Nilex, which helps medium and small companies raise capital, as two regulated possibilities for investment.

Currently, the statement added, amendments are being made to the financial markets law to regulate the foundation of futures and commodity exchanges.

“[Exchanges] other than what have been mentioned specifically [in the statement] require legislation to be practiced,” the statement said, quoting Omran.

“Although we are keen to help find an investment environment capable of attracting funds and spurring the flow of local and foreign investments, protecting participants in non-bank financial markets urges us to release a warning against fast developments the world is witnessing in what is known as the digital [currencies] revolution.”

“Mystery still surrounds these currencies amid major warnings from numerous banking and supervisory authorities against them, including the International Organisation of Securities Commissions.”

Digital currencies are not tangible and are decentralised, and do not represent an amount of gold or silver. Bitcoin, the leading cryptocurrency, is believed to be the first of hundreds of digital currencies introduced to the internet sphere, as well as being the most valuable and most widespread globally.

Due to a lack of transparency and guarantees, Omran said, there is a high probability of fraud comes with cryptocurrency dealings. “Those who deal with these currencies could lose all their funds,” he said.

The Central Bank of Egypt has more than once said the banking sector does not accredit cryptocurrencies, which have grown significantly popular over the past years.

Short link:


Ahram Online welcomes readers' comments on all issues covered by the site, along with any criticisms and/or corrections. Readers are asked to limit their feedback to a maximum of 1000 characters (roughly 200 words). All comments/criticisms will, however, be subject to the following code
  • We will not publish comments which contain rude or abusive language, libelous statements, slander and personal attacks against any person/s.
  • We will not publish comments which contain racist remarks or any kind of racial or religious incitement against any group of people, in Egypt or outside it.
  • We welcome criticism of our reports and articles but we will not publish personal attacks, slander or fabrications directed against our reporters and contributing writers.
  • We reserve the right to correct, when at all possible, obvious errors in spelling and grammar. However, due to time and staffing constraints such corrections will not be made across the board or on a regular basis.

© 2010 Ahram Online.