3 Million Crypto Holders in Egypt Despite Complete Ban

It’s hard to believe, but Egypt-a country that officially bans cryptocurrency-might have around 3 million people holding Bitcoin, Ethereum, or other digital assets. That’s more than the population of many small nations. And yet, the government says it’s illegal. No licenses. No exchanges. No bank support. Just silence and strict penalties.

How Can Crypto Exist in a Country That Banned It?

Egypt’s Central Bank of Egypt (CBE) made its stance crystal clear in 2020 with Law No. 194. Article 206 doesn’t just discourage crypto-it outright bans it. No individual, no bank, no business can trade, promote, or even hold cryptocurrency without written permission from the CBE. And that permission? It doesn’t exist. Not yet.

Violators face prison time and fines between EGP 1 million and EGP 10 million-roughly $32,000 to $320,000 USD. That’s not a slap on the wrist. That’s a life-changing punishment. So why do people still do it?

The answer is simple: necessity. Many Egyptians see crypto not as a gamble, but as a lifeline. With inflation hitting over 30% in 2024, the Egyptian pound lost nearly half its value against the U.S. dollar in just two years. Savings evaporated. Salaries didn’t keep up. Banks became slow, expensive, and unreliable. Crypto, even if risky, offered a way out.

Who Are These 3 Million People?

There’s no official count. No government survey. No blockchain analytics firm can track every wallet in Egypt because transactions happen outside the system. But if you talk to local crypto users, you hear the same stories over and over.

Young professionals use Telegram groups to trade USDT for cash via peer-to-peer (P2P) markets. Students send money to family abroad using Binance P2P instead of Western Union, saving 10-15% in fees. Freelancers get paid in Bitcoin because international platforms like Upwork and Fiverr don’t support local bank transfers anymore. Some even buy crypto to protect their savings from sudden devaluations.

One Cairo-based teacher told a local news outlet in late 2025 that she bought $50 worth of Bitcoin every month. “I don’t trust the bank,” she said. “But I trust that Bitcoin won’t disappear overnight.”

That’s the mindset. It’s not about getting rich. It’s about staying solvent.

Why the Ban? The Government’s Side

The CBE isn’t acting out of ignorance. They have real concerns.

First, crypto is volatile. A single tweet can make Bitcoin drop 20%. For a country with fragile currency stability, that kind of wild swing is dangerous.

Second, fraud. There have been multiple pyramid schemes in Egypt disguised as “crypto investment clubs.” People lost life savings. The government saw it as a public threat.

Third, money laundering. Crypto’s anonymity makes it easy for criminals to move funds without leaving a paper trail. Egypt, like many countries, is under pressure from global watchdogs like the Financial Action Task Force (FATF) to tighten controls.

And fourth-control. The CBE wants to manage the money supply. Crypto doesn’t answer to anyone. It can’t be printed, taxed, or stopped. That’s unacceptable to a central bank that sees itself as the guardian of national economic order.

Is the Ban Working?

Not really.

Enforcement is nearly impossible. You can’t arrest 3 million people. You can’t shut down every P2P trade happening in cafes, homes, and underground markets. The tools to track crypto are still primitive, especially in regions with limited tech infrastructure.

Some banks have started flagging accounts linked to crypto exchanges, but users switch wallets, use VPNs, and move to newer platforms. The game of cat and mouse continues.

Meanwhile, the underground market thrives. Telegram channels with thousands of members operate openly. Local traders meet in public parks to swap cash for crypto. Some even use QR codes on WhatsApp to complete trades in seconds.

There’s no official data on volume, but unofficial estimates from blockchain analysts suggest Egypt ranks among the top 15 countries globally for P2P crypto trading volume per capita.

Is Change Coming?

In late 2025, rumors started circulating. Egypt’s Ministry of Finance was holding closed-door talks with fintech firms. A draft law was being prepared-one that would allow licensed crypto companies to operate under strict oversight.

It’s not legalization. It’s regulation. Think of it like this: instead of banning all cars because some people drive drunk, Egypt might start issuing driver’s licenses and setting speed limits.

If this happens, it would be a major shift. Egypt would join countries like the UAE, Singapore, and Nigeria-not by banning crypto, but by controlling it. That could mean official exchanges, tax reporting, and even a central bank digital currency (CBDC) tied to crypto infrastructure.

For now, it’s still rumors. But the fact that officials are talking about it at all? That’s a sign the ban is cracking.

What’s Next for Egypt?

The truth is, you can’t stop technology by law alone. People will always find ways to access tools that help them survive. Crypto isn’t magic. But for millions in Egypt, it’s practical.

If the government continues to ignore demand, it risks losing control entirely. If it tries to crush it, it risks alienating a generation that’s already moved on.

The real question isn’t whether Egypt can ban crypto. It’s whether it can afford to keep trying.

What About Other Countries in the Region?

Egypt isn’t alone. Algeria and Morocco have similar bans. Tunisia and Sudan are watching closely. But even there, crypto use is growing quietly.

In Algeria, people use crypto to buy goods from Turkey and China because local banks block international payments. In Morocco, traders use crypto to send remittances to Europe without paying high fees. The pattern is the same: when the system fails, people turn to decentralized alternatives.

It’s not rebellion. It’s adaptation.

Can You Get Caught?

Yes. But rarely.

The CBE has prosecuted a handful of cases-mostly large-scale operators running unlicensed exchanges. Individuals trading small amounts? Almost never targeted. The government lacks the resources to monitor millions of wallets. And public pressure is growing.

Some lawyers in Cairo are now arguing that criminalizing personal crypto use violates constitutional rights to economic freedom. Those arguments are still in early stages, but they’re gaining traction.

For now, most users stay low. They don’t brag. They don’t post screenshots. They don’t use their real names. They know the rules. They just choose to live by a different one.

What Should You Know?

If you’re in Egypt and thinking about crypto:

• You’re not alone-millions are doing the same.
• Use only P2P platforms with verified sellers. Avoid unregulated apps.
• Never store large amounts on exchanges. Use hardware wallets.
• Don’t advertise your holdings. Privacy is your best defense.
• Stay informed. Laws could change in the next 12-18 months.

It’s risky. But for many, it’s the only way to protect their money.