EGYPT Law and Practice Contributed by: Ibrahim Shehata, Hesham Kamel, Mohamed Abed and Hamza Shehata, Shehata & Partners Law Firm
technologies are pivotal in driving innovation and efficiency in the fintech sector. In conclusion, Egypt’s fintech sector is diverse and dynamic, featuring a range of business mod - els that cater to various needs and drive innova - tion. The key verticals, including payments and remittance, lending and alternative finance, and digital banking, demonstrate the sector’s growth and potential. With ongoing efforts to establish a comprehensive legislative framework and the adoption of AI technologies, Egypt’s fintech landscape is poised for continued advancement and opportunity. 2.2 Regulatory Regime The regulatory regime for fintech industry par - ticipants in Egypt is governed by a combination of non-sector-specific rules and specific regula - tions for banking and non-banking financial sec - tors. Additionally, other foreign laws may apply whenever the case enters their scope, such as the EU General Data Protection Regulation (GDPR). Non-Sector-Specific Legislation The telecommunications sector is regulated by the Telecommunications Law, which covers all telecommunications services, including the installation and operation of networks, the use of equipment, the provision of wired and wire - less communications, and IT services. This law is integral to the digital economy and interacts with other laws, such as the E-Signature Law, the Cybercrimes Law and the Media Law. The E-Signature Law No 15 of 2004 recognises electronic signatures and contracts, allowing their use in contract formation. It establishes the Information Technology Industry Develop - ment Agency (ITIDA) to regulate and supervise e-signature activities. E-signatures must meet
criteria such as being linked to the signatory and being under their control. The verification and issuance of e-signature certificates are handled by service providers that are licensed by ITIDA. The Data Protection Law No 151 of 2020 upholds data protection rights and aligns with international standards. It defines personal data and processing, requiring express consent from data owners and implementing measures to secure personal data. It is worth noting that the executive regulations of this law have not yet been issued, which hinders its effective applica - tion. Furthermore, the data retained by the CBE and banks and establishments that fall under its scrutiny is excluded from the scope of this law. These entities are governed by different regula - tions issued by the CBE. The Cybercrimes Law, effective from August 2018, regulates online activities and penalises unlicensed activity and content violations. Ser - vice providers must keep records for 180 days, maintain data confidentiality and secure data to prevent damage. The Non-Cash Payment Law No 18 of 2019 encourages the use of non-cash payment meth - ods and regulates the use of electronic payment systems. Its scope of application covers primar - ily public authorities, publicly held companies and a defined category of privately held com - panies with respect to the payment of salaries. Banking Sector Legislation The New Banking Law No 194 of 2020 integrates the banking system into the digital economy, introducing digital banks, cashless payments, payment service providers (PSPs) and crypto - currency regulations, as complemented by the CBE’s regulations. It sets licensing conditions for operating payment systems and services,
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