Egypt Crypto Tax Guide — العملات الرقمية والضرائب في مصر

the cryptocurrency regulation and taxation in Egypt for 2026. The guide covers: the legal status — the cryptocurrencies are NOT officially recognised as the legal tender or the currency in Egypt; the Central Bank of Egypt (CBE) 2018 prohibition — the CBE warns against the crypto trading and prohibits the banks and the financial institutions from dealing in the cryptocurrencies; the absence of a clear tax framework — the Egypt Tax Authority has NOT issued specific guidance on the crypto taxation; the potential capital gains tax at 10-22.5% on the black market or the grey-market transactions; the mining regulation — the crypto mining is not regulated; the e-commerce and crypto businesses — these face heightened scrutiny from the financial intelligence authorities; and the 2024-2026 regulatory developments — the draft cryptocurrency law is under review but has NOT been enacted as of mid-2026.

Legal Status of Cryptocurrencies — الوضع القانوني للعملات الرقمية

Not legal tender: The cryptocurrencies (including Bitcoin, Ethereum, USDT, and others) are NOT recognised as legal tender (the "عملة قانونية") in Egypt. The official currency of Egypt is the Egyptian Pound (EGP — الجنيه المصري). The CBE has repeatedly stated that the cryptocurrencies are not guaranteed by the state and carry significant risks.
CBE 2018 prohibition — تحذير البنك المركزي: In 2018, the Central Bank of Egypt (CBE — البنك المركزي المصري) issued a formal warning (not a legislative ban) against the cryptocurrency trading. The CBE prohibited the banks, the payment service providers, and the financial institutions from: (a) dealing in the cryptocurrencies, (b) facilitating the crypto transactions, (c) providing the accounts or the services to the crypto exchanges, (d) issuing or marketing the crypto-based products.
Effective prohibition for the financial system: While the CBE warning does NOT criminalise the individual ownership of the cryptocurrencies, it effectively prohibits the fiat on-ramps and off-ramps within the Egyptian banking system. The individuals cannot use the Egyptian bank accounts to fund the crypto exchange accounts or to withdraw the crypto proceeds to the Egyptian bank accounts. This forces the Egyptian crypto users into the informal or the peer-to-peer (P2P) trading channels.
Dar al-Ifta fatwa (2018): The "دار الإفتاء المصرية" (the "Egyptian Dar al-Ifta" — the official Islamic legal advisory body) issued a fatwa declaring the cryptocurrency trading as "حرام" (the "haram" — the "religiously prohibited") due to the speculation, the volatility, and the potential for the fraud and the money laundering. While the fatwa is not legally binding, it influences the public perception and the regulatory approach.

Tax Framework — الإطار الضريبي (or Lack Thereof)

No specific crypto tax guidance: The "مصلحة الضرائب المصرية" (the "Egypt Tax Authority — ETA") has NOT issued any specific guidance or ruling on the taxation of the cryptocurrency transactions. The general tax principles under the Income Tax Law 91/2005 would apply by analogy, but the application is uncertain and the enforcement is limited.
Potential capital gains treatment — 10-22.5%: In the absence of the specific rules, the ETA would likely treat the crypto trading gains as the "أرباح رأسمالية" (the "capital gains"). The capital gains on the financial assets are generally taxed at the applicable rates: (a) 10% for the individuals under the personal income tax (for the gains from the unlisted securities or the assets held for the speculative purposes), (b) 22.5% for the corporate entities. However, the listed securities held for more than 1 year are exempt — whether the crypto would qualify for this exemption is unclear.
Business income classification: If the crypto trading is conducted as a business activity (regular, systematic, and profit-seeking), the income may be classified as the "نشاط تجاري" (the "business income") and taxed at the progressive individual rates (0% to 25%) or the corporate rate of 22.5%. The expenses incurred in the crypto business (the electricity, the equipment, the internet) may be deductible.
VAT implications: The crypto transactions may theoretically attract the VAT at 14% if classified as the taxable supply of services. However, the ETA does NOT currently enforce the VAT on the crypto transactions. The crypto mining pool services and the exchange platforms operating outside Egypt may not have the VAT compliance obligations in Egypt.

Mining — التعدين

No specific regulation: The cryptocurrency mining (the "تعدين العملات الرقمية") is NOT specifically regulated or prohibited in Egypt. However, the practical constraints make the mining difficult: the electricity is subsidised for the residential users but the industrial-scale mining requires the commercial electricity rates, and the import of the mining equipment is subject to the customs duties and the potential scrutiny under the import control regulations.
Tax treatment of mining income: The mining income (the block rewards and the transaction fees) would likely be treated as the "نشاط صناعي" (the "industrial activity" or the "business income") for the tax purposes. The miner would be required to: (a) register with the ETA as a taxpayer, (b) declare the mining income at the fair market value (in EGP) at the time of receipt, (c) deduct the mining expenses (the electricity, the hardware depreciation, the rent), (d) pay the corporate or the personal income tax on the net profit.
Customs and import issues: The import of the ASIC miners and the GPU rigs into Egypt is subject to: the customs duties at 5-30% depending on the classification, the VAT at 14% on the CIF value, and the potential delays due to the regulatory uncertainty around the crypto-related equipment.

E-Commerce and Crypto Business Scrutiny — الرقابة على التجارة الإلكترونية والعملات الرقمية

Financial intelligence scrutiny: The "وحدة مكافحة غسل الأموال وتمويل الإرهاب" (the "Financial Intelligence Unit — FIU") closely monitors the transactions involving the cryptocurrencies. The e-commerce businesses that accept the crypto payments or operate the crypto-based platforms face: the enhanced due diligence from the banks, the mandatory reporting of the suspicious transactions, and the potential investigation under the Anti-Money Laundering Law 80/2002.
Banking restrictions: The Egyptian banks are prohibited from providing the banking services to the businesses dealing in the cryptocurrencies. This includes: the corporate accounts, the merchant accounts, the payment gateway services, and the foreign currency transfers. The crypto businesses operating in Egypt must rely on the non-banking payment channels or the offshore banking.
P2P trading: The peer-to-peer (P2P) crypto trading in Egypt operates in the grey market. The P2P traders use the platforms like Binance P2P, LocalBitcoins, and the Telegram groups. The tax authority does NOT actively pursue the individual P2P traders, but the large-scale P2P traders may be subject to the tax assessment and the money laundering scrutiny.

Regulatory Developments — التطورات التنظيمية (2024-2026)

Draft cryptocurrency law under review: As of mid-2026, the Egyptian government (the "مجلس الوزراء" — the "Cabinet of Ministers") has a draft cryptocurrency law under review. The draft law aims to: (a) establish a legal framework for the digital assets, (b) license the crypto exchanges and the custodians, (c) impose the AML/KYC requirements on the crypto service providers, (d) introduce the taxation of the crypto transactions. The draft has been in development since 2022 and has NOT been enacted as of June 2026.
FRA role expansion: The "الهيئة العامة للرقابة المالية" (the "Financial Regulatory Authority — FRA") is expected to be the designated regulator for the digital assets under the new law. The FRA already regulates the capital markets, the insurance, and the non-banking financial activities, and has the technical capacity to supervise the crypto sector.
International pressure: The FATF (the Financial Action Task Force) Recommendations 15 and 16 require the member countries (including Egypt) to regulate the virtual assets and the virtual asset service providers (VASPs). Egypt's current lack of a crypto regulatory framework has been noted in the FATF mutual evaluations, and the pressure to enact the crypto legislation continues.
Practical outlook for 2026: In the absence of the enacted legislation, the Egyptian crypto market remains in the grey area: the individuals can hold and trade the crypto through the offshore exchanges and the P2P channels at their own risk, but the businesses cannot operate the crypto services legally within the Egyptian banking system. The tax authority does not actively assess the crypto gains but may do so retrospectively once the legislation is enacted.