1-10 Million Pound Fines for Crypto Trading in Egypt: What You Need to Know

It’s illegal to trade cryptocurrency in Egypt. Not just discouraged. Not just risky. Crypto trading is a crime that can land you in jail or cost you up to 10 million Egyptian pounds-roughly half a million U.S. dollars. That’s not a warning. That’s the law.

What the Law Actually Says

Law No. 194 of 2020 is Egypt’s official hammer against cryptocurrency. Article 206 makes it a criminal offense to issue, trade, promote, or operate any crypto exchange without government approval. The penalties aren’t optional. They’re mandatory: either imprisonment, or a fine between 1 million and 10 million Egyptian pounds. Some people get both.

The Central Bank of Egypt (CBE) didn’t just make this up. They’ve been warning people since 2018. Back then, they singled out Bitcoin, saying it had no real value, no backing, and no oversight. By 2020, they turned those warnings into prison sentences. The Egyptian Financial Regulatory Authority (FRA) backed them up, warning citizens not to fall for social media scams promising crypto returns. They said these schemes are often fronts for fraud, money laundering, and cyber theft.

It’s not just about buying Bitcoin on Binance. Even promoting crypto on Instagram, running a Telegram group that shares trading tips, or helping someone set up a wallet can be considered illegal promotion under this law. The government doesn’t care if you’re a student, a freelancer, or a small business owner. If you’re involved in any part of the crypto chain without permission, you’re breaking the law.

Why Egypt Banned Crypto-And Why It Still Doesn’t Work

The government’s reasoning is clear: crypto is dangerous. It’s volatile. It’s used for crime. And since it’s not controlled by the state, it threatens financial stability. That’s the official line.

But here’s the contradiction: Egypt has one of the highest crypto adoption rates in Africa and the Middle East. A 2022 report found over 1.7 million Egyptians owned cryptocurrency-about 1.75% of the population. That’s more than in countries like Nigeria and South Africa, despite their more open policies. People aren’t ignoring the law because they’re unaware. They’re ignoring it because they need to.

Why? Because the banking system in Egypt is slow, expensive, and often inaccessible for international transactions. Freelancers working for clients abroad get stuck waiting weeks for wire transfers, paying high fees just to get paid. Crypto offers a faster, cheaper alternative. For many, it’s not a speculative investment-it’s a survival tool.

The government hasn’t cracked down on every single user. Enforcement is selective. Most people who trade privately aren’t targeted. But if you’re running a business, advertising crypto services, or handling large volumes, you’re on the radar. The FRA has been publishing lists of unlicensed crypto platforms and asking citizens to report them. They’re watching.

What Happens If You Get Caught?

There’s no gray area in the law. If you’re caught trading crypto, the penalties are severe:

• Minimum fine: 1 million EGP ($51,634 USD)
• Maximum fine: 10 million EGP ($516,340 USD)
• Imprisonment (length not specified, but typically for serious financial crimes)
• Both fine and jail time can be applied

These aren’t small numbers. The average monthly salary in Egypt is around 8,000 EGP. A 10 million EGP fine is over 1,200 times that. For most people, paying that fine isn’t an option-it’s impossible. That’s why many who get caught end up in jail instead.

And it’s not just individuals. Businesses are targeted too. Any company that accepts crypto as payment, even accidentally, risks being labeled a violator. Foreign companies working with Egyptian partners have been warned: if your contract includes crypto payments, you could be held liable under Egyptian law.

How This Affects Everyday Life

The ban doesn’t just affect traders. It affects freelancers, remittance senders, small businesses, and even tourists.

Imagine you’re an Egyptian designer working for a client in the U.S. You invoice them in USD. They want to pay you via crypto because it’s faster and cheaper. You say no-because you know the risk. So you wait weeks for a bank transfer, pay $50 in fees, and still get less than expected because of exchange rate swings.

Or you’re a tourist in Cairo trying to pay for a tour with Bitcoin. The guide says no. Not because they don’t want to-but because they could go to jail if they do.

Even crypto education is risky. YouTube channels teaching how to use wallets or trade on exchanges have been taken down. Instagram influencers promoting crypto have been investigated. The government doesn’t want people learning about it. They want it erased.

The Bigger Picture: Egypt vs. the World

Egypt’s stance is extreme. Most countries are trying to regulate crypto, not ban it. The U.S., EU, Japan, and even India have frameworks that allow trading under oversight. China banned it outright, but that’s because they’re building their own digital currency. Egypt has no such plan.

The result? Egypt is cutting itself off from global finance. Businesses avoid operating there because of the legal uncertainty. Investors stay away. Blockchain startups can’t set up shop. Innovation dies before it starts.

Meanwhile, crypto use keeps growing underground. The more the government cracks down, the more people turn to decentralized tools-mixers, peer-to-peer platforms, cash-based trades. Enforcement becomes harder. The law is strict, but the system is porous.

What Should You Do?

If you’re in Egypt: don’t trade. Don’t promote. Don’t even tell people how to do it. The risk isn’t worth it. The fines are too high. The jail time is real.

If you’re outside Egypt and doing business with Egyptians: don’t accept crypto payments. Don’t offer crypto services. Don’t assume they know the risks. Many don’t. And if they get caught, you could be dragged in.

There’s no legal workaround. No licensed exchange exists in Egypt. No government-approved wallet. No safe path. The law is absolute.

For now, the only way to stay safe is to avoid crypto entirely. Not because it’s evil. Not because it’s useless. But because in Egypt, it’s a crime.

What’s Next?

The government hasn’t signaled any softening. In fact, they’ve doubled down. The FRA is preparing a public list of banned crypto platforms. They’re training banks to flag suspicious transactions. They’re working with international agencies to track cross-border crypto flows.

One day, they might change their mind. But for now, Egypt is one of the few countries where owning crypto isn’t just risky-it’s illegal.