EGYPT Law and Practice Contributed by: Ibrahim Shehata, Hesham Kamel, Mohamed Abed and Hamza Shehata, Shehata & Partners Law Firm
11.2 Concerns Raised by Open Banking The CBE places primary responsibility on sen - ior bank management to proactively assess and mitigate risks associated with instant payments, particularly data privacy and security concerns. This ensures adequate protection of the data and systems associated with transactions exe - cuted through the IPN from internal and external threats, achieved through measures such as: • defining precise roles and responsibilities for overseeing and managing the bank’s security policies; • implementing robust safeguards to prevent unauthorised access to computer systems; • establishing the necessary electronic con - trols to restrict access to IPN applications and databases, including data classification, access rights determination and determining who has authorised access; • reviewing and approving key aspects of the bank’s security oversight process, including periodic review of security and system testing procedures; • choosing encryption technology commen - surate with data sensitivity and regulatory requirements, minimising data storage on mobile devices; • utilising secure communication channels like leased lines or virtual private networks for data exchange between banks and payment service partners; and • conducting regular security assessments of all systems (applications, networks, security devices, DNS, servers and email servers).
against dealing in cryptocurrencies, emphasis - ing the legal and financial risks involved. 10.7 Crypto-Related Lending Please see 10.6 Staking . 10.8 Cryptocurrency Derivatives Please see 10.6 Staking . 10.9 Decentralised Finance (DeFi) Currently, there are no specific regulations directly governing DeFi under Egyptian law. 10.10Regulation of Funds Please see 10.1 Use of Blockchain in the Finan- cial Services Industry .
10.11Virtual Currencies Please see 10.6 Staking . 10.12Non-Fungible Tokens (NFTs)
While the regulatory landscape for NFTs in Egypt is currently evolving, existing regulations like the Banking Law prohibit the use of virtual assets (including NFTs) for financial purposes without a prior licence from the CBE.
11. Open Banking 11.1 Regulation of Open Banking
The CBE has recently implemented regula - tions governing instant payments network (IPN) services, enabling people to make electronic inter-bank transfers through mobile phone applications utilising application programming interfaces (APIs). Consequently, banks intending to offer IPN services must first obtain a licence from the CBE.
12. Fraud 12.1 Elements of Fraud
Fintech fraud encompasses illicit practices within the financial technology sector, includ -
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