Egypt to Ban Crypto Firms Operating Without License

Several African Central Banks are now making efforts to regulate cryptocurrency-related activities in their country, amid growing interest in digital currencies across the continent.

An official source from the Central Bank of Egypt (CBE) confirmed today that regulators will soon release a new banking law that will see its Board of Directors regulate and supervise every affair relating to the cryptocurrencies in Egypt.

The CBE drafted banking law is set to ban certain cryptocurrency activities including the creation, promotion, and operation of platforms that issue or allow the trading of encrypted currency or cryptocurrency, outside the necessary licenses, according to the report by MENA.

The new draft law allocates great importance to financial technology, keeping pace with notable innovations in the world’s banking industry, as well as improving the use of modern technology for financial and banking services.

Also, the new banking law will also enable the Board of Directors of CBE to issue procedures and rules that will provide legal authority for:

• Electronic authentication of every transaction related to banks
• Electronic payment orders and transfer orders
• Electronic settlement of checks
• The issuance and circulation of electronic checks and electronic discount orders.

If only the electronic means would meet the technical criteria determined by the Board of Directors, the same authenticity will apply to the original papers.

On the same hand, Coinfomania reported that the South African Reserve Bank (SARB) collaborated with the Inter-governmental Fintech Working Group (IFWG) to establish a new set of rules for crypto-related companies in SA.

SARB noted that its primary objective for with the new law is to provide the investors with an overview of the pros and cons associated with the cryptocurrency assets, knowing that most of the country’s population are have less knowledge about cryptocurrencies.

In Southeastern Africa, however, the Reserve Bank of Malawi has advised its citizens to stay away from cryptocurrency investments and any related scheme due to the risks associated with them.