Egypt

Egypt maintains a strict prohibition on cryptocurrency activities. Under the Central Bank and Banking System Law No. 194 of 2020, issuing, trading, promoting, or mining cryptographic units without a license from the Central Bank of Egypt (CBE) is explicitly illegal. No such licenses have been granted, creating a de facto ban on all crypto-related operations within the country. Investors engaging in these activities face significant penalties, including imprisonment and fines up to EGP 10 million. The Central Bank of Egypt (CBE) is the primary regulatory authority responsible for this prohibition, operating under the Central Bank and Banking System Law No. 194 of 2020. This legal framework makes any crypto activity unauthorized. Given the outright ban, Egypt has no legal framework for taxing cryptocurrency. This means there are no individual tax rates, capital gains taxes, or income taxes specifically applicable to crypto earnings, as such activities are not legally recognized or permitted. Consequently, distinctions between short-term and long-term gains, or any exemption thresholds or allowances, do not exist for crypto assets. Corporate tax and crypto-specific Value Added Tax (VAT) are also inapplicable due to the illegality of operations. Similarly, specific crypto activities such as staking, mining, Decentralized Finance (DeFi) operations, and Non-Fungible Tokens (NFTs) are also prohibited under the existing law, as they fall under unauthorized issuance, trading, or promotion of cryptographic units. Converting crypto to fiat currency or engaging in crypto-to-crypto swaps are likewise illegal and therefore not recognized as taxable events in Egypt. There are no reporting obligations for crypto activities, as declaring them would highlight engagement in illegal operations.