On-shore VASP in Egypt
Locally-incorporated VASP that operates under full local jurisdiction, holding all required licenses and registrations.
On-shore VASP is not permitted in Egypt.
Verdict Details
- Permitted
- no
- Local entity required
- No
- Licensing burden
- None
- Last updated
- 2026-07-13
Key Restrictions
- Article 206 of Law No. 194 of 2020 prohibits issuing, trading, or promoting cryptocurrencies or establishing/operating platforms for their trading without a license from the Central Bank of Egypt.
- The CBE has not issued any licenses for VASP activities and has reiterated its warnings, making licensed on-shore VASP operations effectively impossible.
- Violations are punishable by imprisonment of 3–10 years and/or a fine of EGP 1 million to 10 million (Article 217 of Law No. 194 of 2020).
- A 2018 fatwa from Dar al-Ifta al-Masriyyah declared cryptocurrency trading haram (impermissible), further shaping public/regulatory sentiment.
Key Risks
- Criminal prosecution risk (imprisonment 3–10 years) for operating without a CBE license.
- Declaring crypto income to tax authorities could expose operators to legal consequences for engaging in a prohibited activity.
- No licensing framework exists — even if an operator wanted to comply, there is no path to licensure.
- Regulatory ambiguity: no specific crypto tax or AML framework exists for VASPs, and the FATF Travel Rule has not been adopted for VASPs.
Evidence
This verdict synthesizes the following facts. Each fact links to its primary source(s).
Article 206 of Law No. 194 of 2020 prohibits the issuance or trading of cryptocurrencies, or the establishment or operation of platforms for their trading, or conducting any related activities, without a license from the Board of Directors of the Central Bank.
Given that the CBE has not issued any such licenses, and has reiterated its warnings, this effectively means that the activities typically performed by VASPs (exchanges, custodians, etc.) are prohibited in Egypt.
Article 206 of Law No. 194 of 2020 states: "It is prohibited to issue, trade, or promote cryptocurrencies or deal in them or create or operate platforms for their trading without obtaining a license from the Board of Directors of the Central Bank in accordance with the rules and procedures specified thereby."
Article 217 of Law No. 194 of 2020 stipulates:
As of now, the CBE has not issued a comprehensive licensing framework for VASPs to operate exchanges or provide other virtual asset services. Therefore, a legally operating VASP sector that would be subject to Travel Rule implementation does not exist in practice.
Law No. 194 of 2020 (Central Bank and Banking Sector Law): Article 206 explicitly states that "issuing, trading, or promoting cryptocurrencies or transacting in them is prohibited within Egypt without a license from the Board of Directors of the Central Bank of Egypt." As of now, no such licenses have been granted, making these activities generally illegal within the formal financial system.
Dar al-Ifta al-Masriyyah (Egypt's official religious authority): Issued a religious decree (fatwa) in 2018 declaring cryptocurrency trading as impermissible (haram) under Islamic law, citing its speculative nature and associated risks. While not a tax law, this further shapes public and governmental perception.
Legal Basis: Article 206 of Law No. 194 of 2020 (the Central Bank and Banking Sector Law) explicitly states: "It is prohibited to issue cryptocurrencies or trade them, or promote them, or establish or operate platforms for their trading, or to carry out activities related to them without obtaining a license from the Board of Directors of the Central Bank in accordance with the rules and conditions determined by it."
Verdict Attribution
- Source:
- AI-Generated · Unreviewed
- AI synthesized:
- 2026-07-13 (deepseek-chat)
- Last updated:
- 2026-07-13
- Confidence:
- high
This verdict was produced by an AI model from the underlying facts. Confirm with counsel before relying on it for material decisions.
Not permitted — Article 206 of Law No. 194 of 2020 prohibits cryptocurrency trading and platform operation without a CBE license, and the CBE has not issued any such licenses, effectively making on-shore VASP operation illegal and subject to criminal penalties (3–10 years imprisonment and/or fines of EGP 1M–10M).
Questions this verdict aims to answer
- What license(s) are required to operate locally?
- What capital, governance, and reporting obligations apply?
- What is the application process and timeline?