EGYPT Law and Practice Contributed by: Ibrahim Shehata, Hesham Kamel, Mohamed Abed and Hamza Shehata, Shehata & Partners Law Firm
10.2 Local Regulators’ Approach to Blockchain Please see 10.1 Use of Blockchain in the Finan- cial Services Industry . 10.3 Classification of Blockchain Assets Please see 10.1 Use of Blockchain in the Finan- cial Services Industry . 10.4 Regulation of “Issuers” of Blockchain Assets Please see 10.1 Use of Blockchain in the Finan- cial Services Industry . 10.5 Regulation of Blockchain Asset Trading Platforms Please see 10.1 Use of Blockchain in the Finan- cial Services Industry . 10.6 Staking Staking allows cryptocurrency holders to earn returns by locking their coins in a dedicated staking wallet, akin to a savings account where funds generate interest while they remain depos - ited. The returns from staking vary based on the quantity of staked coins and the duration of their commitment. In Egypt, any activities involving the creation, trading, promotion or other dealings in crypto - currencies are strictly regulated under the Bank - ing Law. According to this law, such activities require a licence from the CBE. Since staking is inherently linked to cryptocur - rency activities, it falls under the category of prohibited activities unless a proper licence is secured from the CBE. Therefore, offering or engaging in staking services without the nec - essary licensing is not permissible under Egyp - tian law. The CBE has issued multiple warnings
activities in the non-banking financial services sector, including regtech activities. 9.2 Contractual Terms to Assure Performance and Accuracy The Non-Banking Fintech Law mandates the inclusion of specific contractual terms for non- banking fintech providers employing financial technology. These include: • detailed identification and verification of con - tract parties, to ensure all parties involved are clearly identified and verified; • defined financing parameters, to precisely define the amount, duration, instalments and individual instalment value of the offered financing; • the interest rate structure, to specify the inter - est rate used to calculate financing costs, clarifying whether it is fixed or variable, and independent of limitations set by other laws; and • guarantee disclosure, to clearly disclose any guarantees secured by the financier. 10. Blockchain 10.1 Use of Blockchain in the Financial Services Industry Distributed ledger technology and blockchain remain largely unregulated. However, the Bank - ing Law restricts certain activities related to blockchain, such as issuing or trading cryp - tocurrencies and electronic money, as well as establishing platforms for their exchange, as such activities require a licence from the CBE as per its regulations.
216 CHAMBERS.COM
Powered by FlippingBook