Egypt Sees The Bitcoin Light, To Loosen Cryptocurrency Regulation Restrictions For Businesses
Egypt To Lift Crypto Ban
While there are many countries in the world such as Malta that are very friendly towards cryptocurrency and have welcomed it with open arms, not every country has followed in its footsteps. Some examples are China and India who have harsh restrictions against cryptocurrency that have forced several companies to close down or move shop to more friendly places.
However, the growing popularity of cryptocurrency, as well as improvements that have been made in certain aspects such as security, has led to the loosening of restrictions by several countries as well as private institutions towards cryptocurrency. An example is JP Morgan, who previously had been very critical of cryptocurrency but have since announced that they will be launching their own.
Another example of loosening restrictions around cryptocurrency is a recent report that Egypt might lift their existing ban and allow companies to set up shop in the country. This is from a source who spoke to the Middle East news agency and described a proposed bill that would ban the creation, sale, or promotion of cryptocurrency without the necessary license to do so. In the past, cryptocurrencies were banned altogether in Egypt in accordance with Islamic law and thus, this bill would be a step in the right direction towards crypto adoption in Egypt.
History Of The Ban
The ban in question was first issued in early 2018 by a Shawki Allam, who is the Grand Mufti of Egypt. His reason for the ban was that the technology behind cryptocurrency could undermine the legal system and encourage tax evasion, money laundering, and other fraud activities. He was also concerned about the volatility that surrounds cryptocurrency as well as scams.
Cryptocurrency and tax have been a bit of a mixed bag with certain countries and jurisdictions creating a comprehensive tax for that are helping to regularize the use of cryptocurrency while others still lag behind. There has also been a great emphasis on creating laws that will prevent the use of cryptocurrency for fraud, crime and money laundering purposes. As for volatility, many believe that as the industry matures, the price of cryptocurrency will become as steady as that of traditional fiat currencies, especially in light of the recent bear and bull runs that the market has seen in the last 6 months.
However, many neighboring countries to Egypt have been exploring the technology as the country would not want to get left behind. Should this new bill pass, it will give the board of directors of the Central Bank of Egypt power to regulate cryptocurrencies and to approve licenses for various businesses.
“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,” the report says.
While the draft of the bill is not currently available for public reading, the discussion has taken place in Egypt about cryptocurrency legalization for years and this move to allow cryptocurrency could be a big step in not only cryptocurrency adoption within Egypt for all of Africa as well.