EGYPT Law and Practice Contributed by: Ibrahim Shehata, Hesham Kamel, Hana ElBarbary and Dima Mazen, Shehata & Partners
• demonstrate a commitment to upholding consumer rights in the digital economy. 1.5 The Role of Blockchain in the Digital Economy In Egypt, cryptocurrency activities are strictly regulated under the New Banking Law No 194 of 2020. Article 206 prohibits the issuance, trading, promotion and operation of cryptocurrency plat - forms and electronic money without a Central Bank of Egypt (CBE) licence. Since no licences have been granted, engaging in cryptocurren - cy activities is effectively illegal without proper authorisation. Impact on the TMT Sector The stringent regulatory framework limits the incorporation of cryptocurrency services into digital offerings. TMT companies must avoid unlicensed cryptocurrency activities to prevent legal repercussions. Blockchain Technology While cryptocurrency use is heavily restricted, blockchain technology for non-currency pur - poses is not prohibited. TMT companies can use blockchain for secure data management and smart contracts, adhering to relevant data protection and cybersecurity laws. 2. Cloud and Edge Computing 2.1 Highly Regulated Industries and Data Protection Data Protection Compliance Cloud and edge computing services must com - ply with the Data Protection Law, which governs licensing, processing and securing personal data. Data subjects can file complaints for vio - lations. The law excludes data with the CBE and
entities regulated by the CBE, except remittance and exchange companies. CBE Instructions (2019) The CBE’s instructions to protect customer interests include: • maintaining data confidentiality; • protecting customers in digital services; and • duties of payment and digital service provid - ers. Complaints are handled by the CBE’s customer protection unit. Main Challenges Cloud and edge computing face regulatory and practical challenges due to the lack of a clear regulatory framework and unissued execu - tive regulations. This results in uncertainties in licensing, data protection enforcement, and rights enforcement. 3. Artificial Intelligence 3.1 Liability, Data Protection, IP and Fundamental Rights AI is set to bring significant changes to Egypt’s economy and society. AI has the potential to revolutionise industries, increase productiv - ity and drive economic growth by automating tasks, improving decision-making and fostering innovation. Although a specific AI law is still under devel - opment, several existing laws contribute to AI governance in Egypt (see “Legal Framework” in 1.1 Key Challenges ).
62
CHAMBERS.COM
Powered by FlippingBook