With a lot of crypto regulatory efforts taking place in Africa in recent weeks, it is perhaps not surprising Egypt has joined the trend, hoping to shut down companies in the industry that operate without a license.
According to Egypt Independent, the clampdown by the Central Bank of Egypt (CBE) is one of the new directives outlined in a proposed revised version of the country’s banking law. The bill outlines that the country will not allow anyone or firm to issue a cryptocurrency or operate a crypto-related firm without acquiring a license from the state regulators.
In line with the requirement to option a license before beginning operation, the bill will confer on the Central Bank of Egypt, the power to serve as a regulator for the emerging industry which has existed without adequate supervision until now.
An official source mentioned in the report also confirmed that aside from cryptocurrencies, a significant portion of Egypt’s revised banking law focuses on financial technology.
The Central Bank reportedly used this approach to allow it to keep pace with significant developments in the technology sector, especially learning about new ways that it can integrate these inventions.
For instance, the new bill also provides legal authority for electronic authentication of financial transactions, allowing courts to consider these records if it comes up as evidence in a lawsuit.
It is pertinent to note; however, that the report did not provide a timeline regarding when Egypt’s crypto rules will go live but only suggested it will happen soon.
In other recent reports regarding the state of crypto regulation in Africa, Stmarket.co confirmed on Monday that the Malawi Reserve Bank warned citizens against crypto investments. The South Africa Reserve Bank is also reportedly reviewing the possibility of releasing a bank-backed digital currency.