1-10 Million Pound Fines for Crypto Trading in Egypt: What You Need to Know
If you’re trading cryptocurrency in Egypt, you’re breaking the law-and the penalties aren’t just steep, they’re terrifying. Under Law No. 194 of 2020, anyone caught trading, promoting, or operating a crypto exchange in Egypt faces a fine between 1 million and 10 million Egyptian pounds (roughly $51,600 to $516,000 USD), plus possible jail time. This isn’t a warning. It’s a criminal offense.
How Egypt’s Crypto Ban Works
Egypt didn’t just discourage cryptocurrency. It outlawed it completely. Law No. 194 of 2020, passed by the Egyptian Parliament, makes it illegal to issue, trade, promote, or operate any cryptocurrency-related service without government approval. That means no buying Bitcoin on Binance, no selling Ethereum on local peer-to-peer platforms, and no running a crypto ATM-even if you’re just helping friends.The law doesn’t just target big players. It goes after anyone involved. If you post on Instagram saying, "Buy Bitcoin here, 5% return," you’re breaking the law. If you host a Telegram group for crypto tips, you’re breaking the law. If you accept Dogecoin as payment for your freelance design work, you’re breaking the law.
The Central Bank of Egypt (CBE) has been clear since 2018: cryptocurrencies have no backing, no regulation, and no government guarantee. They call them risky, volatile, and prone to fraud. The Egyptian Financial Regulatory Authority (FRA) added fuel to the fire, warning that crypto promotions violate Capital Market Law No. 95 of 1992, which requires official approval for any public financial offer.
The Fine: What $516,000 Really Means in Egypt
One million Egyptian pounds might sound like a lot-but in Egypt, it’s more than just a fine. It’s a life-altering sum. The average monthly salary in Egypt is around 7,000 EGP. That means the minimum fine (1 million EGP) equals over 140 months of income. The maximum fine (10 million EGP) equals more than 1,400 months-nearly 120 years of earnings.
These aren’t symbolic penalties. They’re designed to scare people away. The government knows most Egyptians can’t afford to pay. So they pair the fine with prison time. You could lose your freedom, your money, or both.
But People Are Still Trading
Here’s the twist: despite the law, Egypt has one of the highest rates of crypto ownership in Africa and the Middle East. A January 2022 report by TripleA found that over 1.7 million Egyptians-about 1.75% of the population-owned cryptocurrency. That’s more than half the number of people who own smartphones in the country.
Why? Because crypto offers something the traditional banking system doesn’t: access. Many Egyptians can’t get international bank transfers. Remittances from abroad take weeks and cost 10-15% in fees. Crypto lets them receive money in minutes, with no middlemen. For small businesses, freelancers, and families relying on overseas income, crypto isn’t a gamble-it’s survival.
Platforms like Paxful and LocalBitcoins still operate in Egypt through peer-to-peer channels. Telegram groups thrive. WhatsApp traders swap USDT for cash in coffee shops. The government may have banned it, but the people keep using it.
Who’s Getting Caught?
The FRA has been actively monitoring. They’ve identified dozens of websites and social media accounts promoting crypto investments as "guaranteed returns." They’ve asked citizens to report these accounts. Enforcement isn’t random-it’s targeted.
Most arrests so far involve promoters: people running crypto training courses, YouTube channels pushing "passive income" schemes, or influencers selling fake crypto mining contracts. Regular traders? Rarely targeted. The government’s priority isn’t catching every buyer-it’s shutting down the infrastructure that makes crypto accessible.
What Happens If You’re Caught?
If you’re investigated for crypto trading, you’ll face two options: pay the fine, or go to jail. The court decides which. You can’t pay a portion. You can’t negotiate. You either pay the full amount, or you serve time.
Assets can be seized. Bank accounts frozen. Phones and laptops confiscated. Even if you’re not the main operator, just being found with crypto wallet files or transaction history can trigger an investigation.
There’s no gray area. No grace period. No "first offense" exception. The law is absolute.
The Bigger Impact: How the Ban Hurts Egypt’s Economy
The ban doesn’t just affect traders. It affects businesses, startups, and international partners.
Companies trying to operate in Egypt can’t use crypto for cross-border payments. They’re forced into slow, expensive bank wires. A tech startup in Cairo can’t accept payments from clients in the U.S. or Europe unless they go through a bank that charges 5% fees and takes 5 days to process.
Blockchain innovation? Stalled. Developers can’t build crypto apps. Investors won’t fund blockchain startups. Foreign investors see Egypt as a high-risk market-not because of politics, but because of this ban.
Meanwhile, countries like Nigeria, Kenya, and even the UAE are building crypto-friendly regulations. Egypt is digging itself deeper into isolation.
Is There Any Way Around It?
Legally? No. There’s no loophole. No licensed exchange exists in Egypt. No government-approved crypto platform. The law leaves no room for exceptions.
Technically? Yes. People still use P2P apps, cash trades, and offshore wallets. But doing so means accepting risk. If you’re caught, the system doesn’t care if you’re just trying to pay rent. The law doesn’t make exceptions for need.
Some Egyptians use VPNs to access exchanges. Others store crypto in hardware wallets and avoid online activity. But these aren’t safe-they’re just less visible. The government has tools to trace wallet addresses, especially if funds move to known exchanges.
What’s Next?
There’s no sign the government is softening. In fact, they’ve doubled down. The FRA has started publishing a "negative list" of unlicensed financial services, and crypto is at the top. They’ve also trained bank employees to flag crypto-related transactions.
Some experts think Egypt might eventually legalize crypto-but only under strict control. Imagine a state-run digital currency, or a government-monitored exchange. But for now, the ban is total.
Until then, trading crypto in Egypt remains a high-stakes gamble. The fines aren’t just numbers. They’re a message: don’t touch this. And for now, the government means it.
Is cryptocurrency completely illegal in Egypt?
Yes. Under Law No. 194 of 2020, all cryptocurrency activities-including trading, promoting, operating exchanges, and even accepting crypto as payment-are banned. Violations are criminal offenses, not civil infractions.
Can I be fined for just owning Bitcoin in Egypt?
Owning Bitcoin alone isn’t illegal-but if authorities find evidence you traded it, promoted it, or used it for payments, you can be fined or jailed. Simply holding crypto in a wallet won’t trigger action, but any transaction activity might.
How much is 1 million Egyptian pounds in USD?
As of early 2026, 1 million Egyptian pounds equals roughly $51,600 USD. The maximum fine of 10 million EGP is about $516,000 USD. These amounts are enormous compared to Egypt’s average income, which is around $700 per month.
Why does Egypt ban crypto when so many people use it?
The government sees crypto as a threat to financial stability and a tool for fraud, money laundering, and tax evasion. They believe unregulated digital currencies undermine the Egyptian pound and the banking system. Despite widespread use, officials prioritize control over adoption.
Can I use crypto to send money to Egypt from abroad?
Technically, yes-but it’s risky. Receiving crypto is not illegal by itself, but converting it to EGP through a local trader or exchange could trigger legal action. Many people still do it, but they rely on cash trades and avoid digital trails. Banks may flag incoming crypto-related transfers.
Are there any licensed crypto exchanges in Egypt?
No. There are zero government-approved cryptocurrency exchanges or platforms operating legally in Egypt. Any service claiming to be licensed is either fraudulent or operating outside the law.
What happens to your assets if you’re fined for crypto trading?
The court can freeze your bank accounts, seize your crypto wallets, and confiscate devices used for trading. If you can’t pay the fine, the state may auction off property or assets to cover the cost. Jail time is also a possibility if the fine isn’t paid.
Has anyone actually been jailed for crypto trading in Egypt?
Yes. While exact numbers aren’t public, multiple cases have been reported by local news outlets and human rights groups. Most involve promoters, influencers, and operators of crypto-related services-not individual buyers. But arrests are increasing as enforcement tools improve.
Can I still use crypto for remittances in Egypt?
Many people do, especially those receiving money from family abroad. But doing so puts you at legal risk. If the transaction is traced and reported, you could face investigation. Some use cash-based P2P trades to avoid digital records, but this carries its own dangers.
Will Egypt ever legalize cryptocurrency?
It’s possible-but not soon. The government’s stance is rooted in fear of losing control over financial flows. Any legalization would likely mean a state-controlled digital currency or heavily restricted exchanges under full surveillance. A free, open crypto market is not on the table.