The Central Bank of Egypt (CBE) has implemented a new regulation that require new licenses in advance for anyone creating, promoting, and operating a cryptocurrency business in the country.
According to the Egypt Independent, ‘the draft bill grants the Board of Directors of CBE the right to issue rules governing the trading and dealing of this type of currency.’
The new bill gives the CBE the opportunity to draft future guidelines for handling, trading, storing and regulating cryptocurrencies in the MENA region, which has a history of banning crypto activities.
The new draft law looks at the entire fintech industry and attempts to keep the banking industry at par with current innovations around electronic settlement, issuance and circulation of electronic checks, as well as electronic discount orders.
The new law comes in the wake of a recent successful simulation test of letter of credit transactions by over 50 banks which included the National Bank of Egypt. Egypt is also considering introducing a blockchain-based digital version of its fiat currency hoping to keep issuance and transaction costs to a minimum compared to coins and banknotes.
The regulation of cryptocurrencies in Egypt is not expected until the end of 2019.