Egypt has issued a fresh warning against dealing in bitcoin and other cryptocurrencies following a surge in local online advertisements for investment in these tools.
The Financial Regulatory Authority (FRA) said these currencies lack official financial backing that guarantees their stability and that they could be used in terror funding.
In a weekend statement on its website and social media, FRA said: ”The absence of a regulatory body to protect investor rights makes dealing with these currencies risky.”
It added: ”They could also be used in fraud, money laundering, and terrorist financing crimes due to the difficulty of tracking their financial transactions.”
The FRA noted that Egypt’s central bank issued a law in 2020 criminalising the dealing in and promoting of cryptocurrencies, adding that the law reflected the legislative approach taken by financial authorities to address the risks associated with these investments.
The statement urged citizens to report suspected activities associated with cryptocurrency dealings to the FRA.
Egypt’s Dar Al-Ifta, an advisory body for Islamic guidance, has repeatedly warned against cryptocurrency dealing.
In a local television question-and-answer programme last month, Dar Al-Ifta secretary Ali Fakhr said bitcoin and other types of cryptocurrencies are not considered “real” money because they are not issued by the central bank.
Bitcoin on Monday reached $104,409, up around 6 percent so far this year, having peaked at almost $106,000 in late January.
