New Central Bank Of Egypt (CBE) Law To License Crypto Trading And Issuing Business Activities
Egyptian Bill To License Crypto-Trading, Activities Through Central Bank underway
The Central Bank of Egypt (CBE) is keen to start regulating the cryptocurrency sphere in the country. Local media reported that the draft of the bill proposes a license policy for all major cryptocurrency related activities within Egypt.
The bill currently in the approval process would allow the Central Bank’s Board of Directors to directly oversee the cryptocurrency regulations and laws in the country. These activities may include but are not limited to the trading, as well as inception, promotion, and advertising of cryptocurrency related projects.
Media reports suggest that the Egyptian government is looking to enhance and upgrade the country’s financial services sector with the advent of new technologies such as digital ledger technology (DLT) and cryptocurrency integrations.
The Board of Directors at the Egyptian Central Bank are believed to be working on the legal draft that would entail the legal status details for different cryptocurrency related bank transactions, transfers and payments.
Along with these areas, the new draft bill is reportedly going to cover the legal framework required to initiate the electronic settlements system. This system would allow issuance of electronic cheques, circulation of these cheques and the electronic discount orders through codes and other methods.
The draft bill leaves the technical criterion to the Central Bank Board of Directors, allowing them legal authority over the digital and cryptocurrency mechanisms similar to fiat authority.
On the other hand, the National Bank of Egypt is already testing a blockchain based letter of credit transaction through the famed R3 earlier in May.
The recent developments are an extension of CBE’s efforts late last year when the bank announced that Egypt would conduct a research study on the feasibility of a Central Bank Digital Currency version of the Egyptian fiat pound.
The Egyptian government and the Central Bank has not received the digital options exceptionally well since the formation of the first cryptocurrency exchange in the country in 2017.
With the International Monetary Fund (IMF) and Financial Action Task Force (FATF) keen to increase global regulations on the cryptocurrency sphere, it appears the Egyptian government is joining the mainstream with a cautious approach.