The Central Bank of Egypt (CBE) has settled on a new draft banking law that would see cryptocurrency exchanges in the African country require licensing before they can create, advertise or operate their platforms for purposes of issuing or trading digital assets.

As reported by local daily The Egypt Independent, an official source had told the MENA news agency that if passed, the draft legislation would also grant powers to the central bank’s board of directors in respect of determining and issuing rules for the trading and management of crypto in Egypt.

The law aims to ensure that the country remains abreast of developments in fintech and the application of emerging technology in the sectors of banking and financial services.

The draft law is now pending regulatory measures and procedures to be issued by CBE, but will set the framework for the legal status for the “electronic authentication of bank transactions, electronic payment orders and transfer orders”.

It now rests with CBE to determine the broad technical criteria granting legal authenticity to the digital equivalents of traditional papers, across electronic settlement, issuance and circulation of electronic checks, and electronic discount orders.

In March, CBE announced a financial tech fund worth EGP 1 billion (USD 1 million) to help boost startups in the industry nationwide.

 

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