On September 16, 2020, Egypt didn’t just update its banking laws-it shut the door on cryptocurrency entirely. Law No. 194 of 2020, officially called the Central Bank and Banking Sector Law, made it illegal to issue, trade, or promote any cryptocurrency without explicit permission from the Central Bank of Egypt (CBE). And since then, no such permission has been granted. This isn’t a gray area. It’s a full ban. For Egyptians who bought Bitcoin in 2019, traded Ethereum on Binance, or mined crypto from their living rooms, this law erased their digital assets from the legal map overnight.
What Exactly Does Law 194 Ban?
Article 204 of Law 194 is blunt: it prohibits three things-issuing, trading, and promoting cryptocurrencies. That means everything from buying Bitcoin on an exchange to running a mining rig at home is technically illegal. Even posting a YouTube video explaining how crypto works could be considered promotion if it’s seen as encouraging others to participate. The CBE is the only body that can grant exceptions, and as of late 2023, it hasn’t granted any.
The law doesn’t just target exchanges. It hits miners, wallet providers, educators, developers, and even people who accept crypto as payment. If you’re involved in any part of the crypto ecosystem, you’re violating the law. The CBE’s enforcement is broad and aggressive. Banks are required to block transactions going to known crypto platforms. Chainalysis data shows peer-to-peer trading volume in Egypt dropped 92% within two years of the law’s implementation.
Why Did Egypt Do This?
Egypt’s government says it’s about protecting the economy. The Central Bank claims cryptocurrencies pose risks to financial stability, are highly volatile, and lack legal protection. Internal CBE reports estimated $200 million in annual crypto transactions before the ban-a small fraction of Egypt’s $1.3 trillion economy, but enough to raise alarms about capital flight. With the Egyptian pound losing value and inflation climbing, officials feared people would use crypto to move money out of the country or bypass currency controls.
There’s also a political layer. The CBE reports directly to the President. Its independence is written into the law, giving it near-total control over financial innovation. Unlike the UAE, which created a regulated crypto sandbox in 2022, or Saudi Arabia, which licensed exchanges, Egypt chose total control. The message was clear: only the state decides what money is.
Who Got Hurt?
The ban didn’t just stop new users-it stranded existing ones. Thousands of Egyptians had funds locked in Binance, Coinbase, or local P2P platforms. When banks started cutting off transactions, many couldn’t withdraw. The Facebook group “Egypt Crypto Victims” has over 12,500 members and documents 427 cases of frozen assets totaling $8.7 million. Some people lost life savings. Others lost business capital.
Entrepreneurs didn’t just lose money-they lost their livelihoods. A 2022 survey by the Egyptian Fintech Startup Association found that 78% of blockchain startups had moved operations out of Egypt. Dubai and Singapore became new hubs. That’s an estimated $150 million in lost investment and talent. One founder told me his team spent two years building a blockchain-based remittance app, only to shut it down when the law passed. “We had users, we had traction,” he said. “But we couldn’t even open a bank account to pay our developers.”
The Hypocrisy of the Ban
While the government bans crypto, it’s quietly pushing blockchain. In November 2022, the Ministry of Communications launched a national blockchain strategy aimed at digitizing land records, healthcare data, and public services. The irony is thick. The same officials who call crypto a threat to stability are using blockchain tech to modernize government systems. Dr. Hanaa El Shenawy called it “Egypt’s Digital Policy Schizophrenia.”
There’s no legal contradiction in the law itself-it only bans cryptocurrencies, not blockchain. But in practice, the confusion has paralyzed innovation. Developers fear that any project touching digital assets could be flagged. Banks won’t touch any fintech startup with blockchain in its pitch deck. The result? A chilling effect on tech growth.
How Is the Law Enforced?
The CBE doesn’t have a crypto police force. Enforcement happens through banks and telecom providers. Banks are required to monitor transactions for signs of crypto activity. Circular 4/2022 forced them to block payments to known exchange addresses. Telecom companies are ordered to shut down apps and websites promoting crypto. Many Egyptians report being blocked from accessing CoinMarketCap or CryptoSlate on their mobile data.
Violations can lead to criminal charges under Article 205. But here’s the catch: there are no published penalty amounts. No fines. No jail terms officially listed. That ambiguity makes enforcement unpredictable. Some people get warnings. Others face bank account freezes. A few have been summoned for questioning. No public cases have been prosecuted, but the threat is real.
What About People Still Using Crypto?
Despite the ban, crypto didn’t disappear. Chainalysis estimates 3.2 million Egyptians-about 3.2% of the population-still use crypto, mostly through peer-to-peer platforms and VPNs. Annual transaction volume is around $1.1 billion. People use local payment apps like Fawry or Vodafone Cash to trade cash for Bitcoin with strangers. It’s risky, but it works. Reddit threads from Cairo users show how they meet in cafes, swap cash, and send crypto through Telegram.
But it’s not safe. The CBE’s warnings are constant. In March 2023, it issued its fourth statement, expanding the ban to include “all types of cryptocurrencies and related financial instruments.” That closed any loophole for security tokens or tokenized assets. There’s no room for interpretation. If it’s digital, decentralized, and not issued by the CBE-it’s banned.
Is the Ban Here to Stay?
Probably. Egypt is negotiating an $8 billion IMF bailout. The IMF’s July 2023 report flagged Egypt’s crypto ban as a barrier to fintech innovation. But the CBE isn’t budging. The World Bank’s October 2023 report predicts the ban will hold through 2025, citing “monetary sovereignty concerns in a period of currency devaluation.”
Still, pressure is building. Fitch Ratings suggested in September 2023 that Egypt might shift toward a “controlled sandbox” by 2026. That would mean allowing regulated crypto trading under strict supervision-like what’s happening in the UAE or Bahrain. But until then, the law remains absolute.
What This Means for You
If you’re in Egypt: don’t trade, mine, or promote crypto. Even holding it is risky. Your bank might freeze your account. Your phone might lose access to crypto sites. Your funds could vanish without warning.
If you’re outside Egypt: understand that Egyptian users are operating in a legal gray zone. Don’t assume their activity is safe. Don’t send crypto to someone in Egypt unless you’re prepared for the consequences they might face.
If you’re a developer or investor: Egypt’s crypto scene is frozen. The talent is gone. The market is suppressed. The only way forward is through government change-and that’s not happening soon.
Is cryptocurrency illegal in Egypt?
Yes. Under Law No. 194 of 2020, it is illegal to issue, trade, or promote any cryptocurrency in Egypt without prior approval from the Central Bank of Egypt. No approvals have been granted since the law took effect, making all cryptocurrency activities effectively banned.
Can I still buy Bitcoin in Egypt?
Technically, no. Banks are required to block transactions to crypto exchanges, and many platforms have suspended Egyptian accounts. However, some people still trade via peer-to-peer (P2P) methods using cash, mobile payment apps, or VPNs. This is risky and not protected by law. If caught, you could face account freezes or legal scrutiny.
What happens if I get caught trading crypto in Egypt?
There are no published penalties, but consequences include bank account freezes, blocked access to crypto websites, and potential summons by authorities. The law allows the Central Bank to refer cases to judicial authorities, but no public prosecutions have been reported as of 2025. The threat is real, even if enforcement is inconsistent.
Why does Egypt ban crypto but allow blockchain?
The government distinguishes between cryptocurrencies (which it sees as unregulated and risky) and blockchain technology (which it views as a tool for digitizing government services). It’s a policy contradiction: banning the currency while using the underlying tech for land records, health data, and public IDs. This creates confusion and stifles innovation.
Has the ban affected Egypt’s economy?
Yes. Between 2019 and 2022, Egypt’s fintech investment dropped 63%, from $485 million to $178 million. Over 78% of blockchain startups relocated to Dubai or Singapore. An estimated $150 million in investment and talent left the country. While the ban may have reduced capital flight, it also stifled a growing tech sector.
Is there a chance Egypt will legalize crypto in the future?
It’s possible, but unlikely before 2026. The IMF has criticized the ban as a barrier to innovation. Fitch Ratings predicts Egypt may move toward a regulated sandbox model by 2026 under pressure from tech entrepreneurs and international lenders. But the Central Bank remains firmly opposed. Any change would require a major political shift.
