The Central Bank of Egypt (CBE) introduced Law No. 194 of 2020, which bans issuing, trading, or promoting digital currencies without prior approval. But here’s the catch: the law doesn’t explicitly say cryptocurrency is illegal. It just requires licenses that the CBE hasn’t issued for any exchange. This creates a legal gray zone. Banks refuse to process crypto-related transactions, so Egyptians have to find workarounds.
Despite these restrictions, Egypt’s crypto market is growing fast. By 2025, it’s expected to hit $690 million in revenue with 11.3 million users. That’s a 9.72% penetration rate. People aren’t using centralized exchanges-they’re trading directly with each other through P2P platforms.
So how does P2P trading work? It’s simple: buyers and sellers connect directly. No bank intermediaries. For example, someone in Cairo might sell Bitcoin for Egyptian pounds (EGP) via mobile money. Another person buys it using Vodafone Cash. The platform handles the escrow, holding the crypto until payment is confirmed. This bypasses banks entirely.
Bybit is a global cryptocurrency exchange that offers P2P trading in Egypt with zero transaction fees and Arabic language support. It supports over 1,700 cryptocurrencies and provides Shariah-compliant trading options for Muslim users. The platform also uses cold storage for security and allows deposits via bank transfers, credit cards, and mobile money.
Binance is another major player. It allows EGP deposits via bank transfers and mobile money. While it charges a 0.1% trading fee, it offers more liquidity and faster transaction speeds. Both platforms provide two-factor authentication and cold storage to protect user funds.
Security is critical because there’s no legal protection. If a platform gets hacked or freezes accounts due to regulatory pressure, traders lose money with no recourse. Most Egyptians avoid keeping large sums on exchanges. Instead, they use hardware wallets for long-term storage.
Payment methods vary. Bank transfers are common, but banks often block crypto-related transactions. Mobile money services like Vodafone Cash and Orange Money are popular. Some traders even meet in person for cash transactions. This flexibility is why P2P works-it adapts to Egypt’s banking restrictions.
Risks are real. In 2024, several Egyptian traders reported frozen accounts on international platforms after new regulatory rumors. Banks sometimes flag crypto-related transactions as suspicious, leading to account freezes. Customer support from foreign platforms can be slow, especially during crises.
Looking ahead, the Egyptian government is exploring blockchain for land registration and digital IDs. But for cryptocurrency itself, the CBE remains cautious. Experts believe P2P trading will continue to dominate until clear regulations emerge. Until then, Egyptians will keep finding ways to trade crypto underground.
| Platform | Supported Payment Methods | Fees | Cryptocurrency Selection | Security Features |
|---|---|---|---|---|
| Bybit | Bank transfers, mobile money, cash | Zero fees for P2P trades | Over 1,700 cryptocurrencies | Two-factor authentication, cold storage |
| Binance | Bank transfers, mobile money | 0.1% trading fee | Over 500 cryptocurrencies | Two-factor authentication, cold storage |
Is cryptocurrency illegal in Egypt?
No, cryptocurrency itself isn’t illegal in Egypt. However, the Central Bank of Egypt’s Law No. 194 of 2020 prohibits issuing, trading, or promoting digital currencies without prior approval. Since no licenses have been issued, most trading happens in a gray area. While not explicitly banned, it’s technically non-compliant with current regulations.
How do Egyptians bypass banking restrictions for crypto?
They use peer-to-peer (P2P) platforms like Bybit and Binance. These platforms allow direct trades between users, using payment methods banks don’t associate with crypto. Mobile money services like Vodafone Cash, cash transactions, and sometimes even encrypted messaging apps for coordination help avoid bank scrutiny. Banks often block crypto transactions, but P2P traders find ways to move funds without triggering bank filters.
What are the safest P2P platforms for Egyptian traders?
Bybit and Binance are the most trusted. Bybit offers zero fees for P2P trades, Arabic support, and Shariah-compliant options. Binance has higher liquidity and faster transactions. Both use two-factor authentication and cold storage for security. Traders avoid platforms without strong security features since there’s no legal recourse if funds are lost.
What risks come with underground crypto trading in Egypt?
The biggest risk is regulatory crackdowns. In 2024, some traders had accounts frozen when banks flagged transactions. Banks may block funds or freeze accounts entirely. There’s also no legal protection for disputes-unlike regulated markets. Traders must constantly monitor regulatory changes and use secure payment methods to avoid scams.
How do payment methods like mobile money work for crypto trades?
Mobile money services like Vodafone Cash or Orange Money allow instant transfers without bank involvement. Traders agree on a trade, then send EGP through mobile money. The P2P platform holds the crypto in escrow until payment confirmation. This avoids bank scrutiny since mobile money transactions aren’t flagged as crypto-related. It’s fast and works even when banks block crypto transactions.