GUIDE | The Crypto Landscape in Egypt and How Users Can Navigate Potential Issues

This guide provides a practical overview of how cryptocurrency operates in Egypt, the key challenges users face, and how they successfully navigate the evolving landscape.

kodzilla··5 min read

Like much of Africa, Egypt’s crypto industry is thriving despite regulatory uncertainty. While clear guidelines remain elusive, interest in digital assets continues to grow among residents and visitors alike.

Egypt’s crypto market at a glance:

  • Projected revenue: $690 million in 2025 (Statista)

  • Expected number of users: 11.3 million by 2025

  • Average revenue per user (ARPU): $61.1 in 2025

  • User penetration rate: 9.72% in 2025

  • Global comparison: The United States is projected to lead with $9.4 billion in crypto revenue by 2025

While Egypt’s crypto market is expanding rapidly, it still lags behind Nigeria, Africa’s leader in crypto ownership, but Egypt leads North Africa in terms of cryptocurrency value received.

Egypt’s crypto community remains active, with many users finding ways to navigate the market. However, challenges such as regulatory ambiguity and banking restrictions continue to impact traders.

This guide provides a practical overview of how cryptocurrency operates in Egypt, the key challenges users face, and how they successfully navigate the evolving landscape.

 

Regulatory Overview

The Central Bank of Egypt (CBE) issued a warning in January 2018 against cryptocurrency trading, citing the high risks involved. It emphasized that transactions within Egypt should be conducted only in official paper currencies approved by the CBE.

However, in 2019, the CBE signaled a shift in stance by announcing that a new draft law would prohibit the creation, trading, or promotion of cryptocurrencies without a proper license. This indicated a move towards regulation rather than an outright ban.


In 2020, the Egyptian Parliament enacted the Central Bank and Banking Sector Law No. 194, which introduced digital finance, digital settlement of cheques, e-money, and cryptocurrencies under regulatory oversight. The law also set forth definitions and licensing requirements for digital banks, marking a step toward integrating digital assets into Egypt’s financial system.

In practice, crypto is not explicitly illegal in Egypt but some activities can attract legal consequences.

Mining cryptocurrency with stolen electricity or failing to pay electricity bills can result in legal action. Additionally, individuals earning more than EGP 250,000 per month for three consecutive months are required to file taxes through a legal representative. Those setting up dedicated mining operations must register them as businesses rather than personal properties to avoid issues with authorities.

 

Below are common issues users have reported when trading crypto in Egypt:

1.) Banking Restrictions

  • Debit and credit card transactions for crypto purchases are often declined, even after OTP confirmation

  • Banks label crypto transactions as ‘unsafe,’ citing security concerns

 

2.) Limited Alternative Payment Methods

  • Prepaid cards and virtual credit cards are potential alternatives but have limited availability

  • Some exchanges require high minimum deposits for bank transfers, making it harder for small investors to participate

 

3.) P2P Trading as the Best Option

  • Binance P2P and other platforms allow secure trading without direct bank involvement

  • Egyptian banks that permit P2P transactions may still restrict direct card purchases

 

4.) Platform-Specific User Experiences

  • Some users successfully withdraw crypto earnings to bank accounts while others face restrictions based on their issuing bank

  • Trust Wallet and Exodus are popular choices for storing crypto

  • Crypto.com has been reported to work smoothly in Egypt

 

In this environment, for those looking to buy and sell cryptocurrency in Egypt, Binance is one of the most commonly used platforms. However, access to Binance is blocked by some internet service providers, such as TE Data. A simple workaround is using mobile data or a VPN.

After registering and verifying an account, users can deposit money through Binance’s peer-to-peer (P2P) feature, which allows direct transactions with other Egyptians. The most common payment methods include Vodafone Cash and bank transfers, and some even use PayPal for international transactions.

Security is a major concern for new investors, but Binance’s P2P system helps mitigate risks by holding funds in escrow until both parties confirm the transaction. To avoid unnecessary scrutiny, it is advisable not to mention cryptocurrency in bank transfer descriptions.

Once funds are deposited, users can exchange Egyptian Pounds for $USDT, a stablecoin linked to the U.S dollar, and then purchase other cryptocurrencies from there. When cashing out, the process is simply reversed: crypto is sold for $USDT, which is then exchanged for local currency through P2P.

 

Conclusion

The Egyptian crypto community is growing, with many traders reporting years of activity without legal trouble. However, caution is necessary due to the evolving regulatory landscape.

While trading remains largely unregulated, miners and high-volume traders should take extra steps to ensure compliance.

For those new to crypto, a few general tips can help ensure a safer investment journey. Investing only what one can afford to lose is crucial, as the market is highly volatile. Patience is key – many beginners panic and sell at a loss when prices fluctuate. Researching different coins before investing is essential to avoid scams and unreliable projects. Long-term investors should store their assets in a secure software or hardware wallet rather than leaving them on an exchange.

Despite the challenges, cryptocurrency remains a promising investment option for many Egyptians. By understanding the risks, following best practices, and staying informed about regulations, investors can safely navigate the crypto space and make informed decisions.

 

 

 

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