1,650 Blockchain crypto entities in the UAE a 13.8 percent growth YOY

1,650 Blockchain crypto entities in the UAE a 13.8 percent growth YOY

According to a Crypto Oasis at the end of 2022 there were 1,650 blockchain and crypto entities in the UAE. Crypto Oasis notes that the ecosystem has been growing faster than previously anticipated.

As per the release, the Ecosystem has witnessed a sturdy 13.8% growth that proves that the Crypto Oasis is expected to continue its robust growth in the coming months as regulators in the region welcome innovation and disruption, making it easier for blockchain-related companies to secure licenses and operate.

At the forefront of this is Dubai Multi Commodities Centre(DMCC) which is home to over 500 of these native Blockchain organizations, representing the largest concentration of crypto and blockchain companies in the Middle East and North Africa (MENA) region.

Crypto Oasis has added 200+ new organizations in Q4 2022 that have brought in 1,300+ new professionals to the burgeoning Ecosystem, bringing the total number of individuals working in this industry to 8,300+. This 19% growth in employment numbers can be attributed to the UAE being a force to reckon with in the global Blockchain landscape. 78.2 percent (approx. 6,500) of these individuals work in native blockchain organizations, i.e. those which are focused on blockchain and related decentralized technologies. 21.8 (approx. 1,800) percent work for non-native companies, i.e. those that offer blockchain related services or products but do not have blockchain as their primary focus.

Ralf Glabischnig, Founder of Crypto Oasis, stated, “We’re thrilled to have identified these new organizations in our ecosystem that are contributing to a diverse community of stakeholders. The possibilities for Web3 technology are vast, from finance and supply chain management to gaming and social media. However, as it’s a relatively new and emerging technology, its full potential hasn’t been reached yet and the industry is facing challenges such as scalability, security, and user adoption. It’s an exciting and rapidly evolving field to watch and we’re eager to collaborate and learn from each other as we work to improve Web3 and decentralized technologies.”

“The UAE is the perfect amalgamation of Talent and Capital built on a world class Infrastructure,” said Saqr Ereiqat, Co-Founder of Crypto Oasis. “The Ministry of Economy (MoE) has become one of the first Government entities in the world to be active in the metaverse. In 2022 the MoE published its Digital Economy Strategy which aims to double the contribution of digital economy from 9.7% to 19.4% in the next decade. The inception of regulators like VARA and various industry events like the Abu Dhabi Finance Week and Dubai Fintech Week, as well as the launch of the Dubai Economic Agenda “D33″, demonstrate UAE’s commitment in taking an active step to becoming the center of digital economy globally.”

KSA Minister of Finance: CBDCs are a fantastic tool for developing countries

KSA Minister of Finance: CBDCs are a fantastic tool for developing countries

During the World Economic Forum’s session’ Financial Institutions innovating under pressure’ The Saudi Minister of Finance Mohammed al-Jadaan stated that while CBDCs have privacy issues they are a fantastic tool in developing countries.

While the panel discussed the risks that crypto and new technologies were posing especially given that crypto losses were over $1 trillion in 2022, most agreed that the regulation was a key element in mitigating these risks.

Saudi Finance Minister Al Jadaan also believes that the real risks of these innovations haven’t even been seen yet, and the one incident with the loss of 12 zeros has triggered a lot of thinking of what needs to be done.

He believes that Central Banks, traditional financial institutions and even innovators in Fintech need to discuss how to deal with Anti Money laundering issues, terrorism financing and entities that use these technologies to circumvent the regulatory framework.

When discussing CBDC (Central Bank Digital Currencies) Al Jadaan noted “Whether CBDCs and similar government sponsored currencies one will need to think about privacy.” He believes that the minute a government issues a CBDC or government sponsored cryptocurrency there is a compromise on privacy.

He states, “There is a lot of data to whoever is holding that currency.”

Yet he believes that CBDC is a fantastic tool in developing countries. He explains, “It can be used as a social safety net. CBDC can be used by people to exclusively buy milk, rice, oil but may not be allowed for other items.” He notes that while on one hand it is beneficial the other side of it is the risk of privacy invasion. ‘Bottom line no perfect solution.

Saudi Arabia piloted a CBDC with the UAE under the name ABER. The report on the final project was positive from a technical standpoint and the report highlighted the need for further use case trials.

In addition in July 2022, the Central Bank of KSA hired former Accenture Director Mr. Mohsen Alzahrani to lead the virtual asset and Central Bank Digital currency project at the bank.

It seems KSA is still studying the impact of CBDC implementation and is worried about the issue of privacy infringement.

Qatar Sovereign Wealth Fund at DAVOS reasserts investment interest in Blockchain technology

Qatar Sovereign Wealth Fund at DAVOS reasserts investment interest in Blockchain technology

During a Bloomberg TV interview at WEF Davos event, Mansoor Al Mahmoud, CEO, of Qatar Investment Authority, reaffirmed the fund’s interest in investing in Blockchain technology, more precisely any application using Blockchain.

Qatar’s sovereign wealth fund will use the current economic turmoil as an opportunity to rebalance its $450 billion portfolio. The Qatar Investment Authority is looking for opportunities in Europe, Asia and the US in sectors such as venture capital, fintech and sports except for crypto.

As Al Mahmoud stated, “We are still not interested in crypto, yet we are interested in investing in Blockchain technology. Any application using Blockchain would be of our interest. This is a technology that came to remain.

The QIA in October agreed to invest $2.5 billion in RWE AG to back the German utility’s purchase of US renewable assets. It was also a cornerstone investor in sports car brand Porsche AG’s IPO and has invested in a string of tech start-ups.

Qatar also launched its Blockchain blueprint in 2022 and Qatar University invested in Maxya Blockchain a project developed by two professors at Qatar university came together to build a blockchain network from scratch that would not only be utilized as a ledger but also as a super computer.

Egyptian Blockchain Pravica messaging startup receives investment from Cardano’s Blockchain accelerator

Egyptian Blockchain Pravica messaging startup receives investment from Cardano’s Blockchain accelerator

Egyptian founded and UAE based Pravica, a blockchain company offering decentralized private messaging and community group solutions, has secured a funding investment from Adaverse Cardano Ecosystem Accelerator and venture capitalist. Adaverse aggregates entrepreneurs, strategists and mentors building its most robust foundation in Africa and Asia.

The investment will be used to support the company’s growth and development, including its efforts to expand its chain-agnostic web3 messaging platform that enables users from different blockchains to communicate in a truly end-to-end encrypted (E2EE), open source and decentralized environment.

“Pravica empowers users to take control of their own encryption keys and protect their privacy on the new user-owned Internet” said Mohamed Abdou, CEO of Pravica. “This investment from Adaverse will help us bring our unique approach to secure communication to a wider audience.”

In September 2022, Pravica launched the first DcFi ( Decentralized Communications and Finance platform) under the name Pravica Club. 

Adaverse, a leading investor in blockchain technology, sees the potential for Pravica’s chain-agnostic platform in the market. 

Adaverse is a collaborative initiative between EMURGO and Everest Ventures Group to support blockchain founders with funds, mentorship, and tech infrastructure to scale Web3 Solutions. 

Shogo Ishida, Co-CEO for the Middle East & Africa at EMURGO Africa, commented “Adaverse and EMURGO are excited to support Pravica’s vision of a decentralized, secure communications system built on the blockchain. Both in Africa and across the world, recent market events have highlighted the importance of security and confidentiality in the Web3 space. Pravica provides one of the first tangible solutions to this issue, and Adaverse is glad to be joining their journey with strategic mentorship and tools for growth on the Cardano blockchain.”

The funding from Adaverse will enable Pravica to continue to develop and expand its chain-agnostic messaging platform, enabling secure communication for users across different blockchains.

Prior to the investment from both EMURGO Africa and Adaverse Pravica had received investment from 500 Startups fund. 

In addition Pravica had made some impressive new hiring announcements. Bedie Moran has joined as the Chief Operating Officer of Pravica. Bedie brings a wealth of experience in Fintech working as a management consultant for KPMG Consulting and as head of the strategy team for E-trade Financial. More recently Bedie has focused his attention on supporting digital startups in Africa and the Middle East.

Pravica also announced the appointment of Alejandro Criado-Pérez as their new Chief Technology Officer. Alejandro Criado-Pérez brings a wealth of experience and expertise in the field of blockchain, having previously worked as Tech lead at Stacks Foundation.

One of the key projects that Alejandro will be working on is Pravica Club. 

The UAE enacts new commercial law allowing virtual asset businesses to set up onshore

The UAE enacts new commercial law allowing virtual asset businesses to set up onshore

The UAE Cabinet recently updated some of its legislation which  included those pertaining to virtual businesses and virtual assets. The UAE is considering the provision of services and the conduct of business and activities related to virtual assets and virtual businesses based on its new commercial law.  As such businesses dealing either virtually or with virtual assets are considered commercial businesses within the UAE as on shore businesses. This comes after the UAE Cabinet of Ministers issued its decision on virtual assets regulation in December 2022 and which will come into effect in January.

As per UAE’s Undersecretary of the Ministry of Economy, Abdullah Al Saleh, developing the business sector is a strategic goal for the state, and providing a legislative environment that stimulates its growth is a top priority.

His comments were made during a media briefing, organized by the Ministry of Economy, to introduce Federal Decree Law No. 50 of 2022 regarding commercial transactions in the country, with the participation of Ibrahim Al Zaabi, Assistant Governor of the Central Bank for Monetary Policy and Financial Stability, and Dr. Maryam Al Suwaidi, CEO of the Securities and Commodities Authority.

As such the UAE Ministry of Economy has issued a new commercial transactions where the most prominent features include reduction of the age of legal capacity to practice business to 18 years, establishment of a legal  reference for commercial transactions for banking institutions to stimulate investment,  support to Islamic banking, amends the provisions related to establishment, regulation of financial markets, and finally support to businesses in tech sector especially digital field.

Al Saleh stated, “ The new law aims to support the commercial interests of the state and comply more with international trade,  strengthen the position of the UAE on the global trade map, keep abreast of international best practices in commercial transactions, and ensure the principles of transparency and clarity in them, as well as raise the country’s classification on relevant economic competitiveness indicators, including the Global Competitiveness Report, and the Ease of Doing Business Report. In addition the new law aims at accelerating the transformation of digital applications further in the business sector in the country, and strengthening the position of the UAE as a center for business activities in the areas of technology, innovation and sectors of the new economy, and reviewed the most prominent provisions and outputs of the new law, which confirms State’s proactive approach.”

The UAE will be creating a virtual business system, the commercial store and commercial transactions, through the means of modern technology, and those that take place in virtual environments, in addition to those provided in realistic standard ways, as well as considering the provision of services and the conduct of business and activities related to virtual assets as virtual businesses in accordance to UAE’s Council of Ministers Legislation regulating virtual assets and their service providers.

This includes

• Giving authenticity to the virtual business so that the same provisions applied to it with respect to similar ones presented realistically.

• Giving legitimacy and authenticity to real and virtual commercial books.

• Selling by public auction of movables instead of used movables and making bids available through a licensed electronic platform or hall or through various modern technology means.

 Dr. Mariam Al-Suwaidi, CEO of the Securities and Commodities Authority, added, “The most noteworthy provisions presented by the new law deal with the securities sector in addition to the fact that the Authority is to consider the business of virtual assets as a commercial business, and this provision gives a privilege to the virtual assets sector. With the issuance of the new law it has been confirmed that businesses related to virtual assets are considered commercial businesses. Therefore, the provisions of this law and other related laws will apply to those who will deal in the activities of this sector, and benefit from the privileges included in the new law, such as the provisions regulating the trader and allowing new age groups to practice business, noting that the Cabinet of Ministers already issued its regulating decision last December for virtual assets, and will enter into force mid-January.” ( Note no public information is available on the Cabinet of Ministers decision for virtual assets.)

The announcement comes in parallel with the recent announcement by the Abu Dhabi based crypto and Blockchain associate to set up a Regulators Committee to help drive change and learn lessons in the wake of last year’s FTX exchange collapse. Jehanzeb Awan of the Middle East, Africa and Asia CBA (MEAACBA) states, “It is pivotal for the industry to help the investing public understand the opportunity and corresponding risks that come with investing in cryptocurrencies. The importance of holistic regulation to minimize regulatory arbitrage is key to reducing the impact of the recent events as well as bringing confidence back to the industry.”

The MEAACBS said its board is setting up a Regulators Committee which aims to bring together the key regulators in the regions covered by the association, to work together in building regulatory regimes that allow for effective oversight of the crypto industry.

62 percent of Oman crypto owners plan to increase crypto holding in 2023

62 percent of Oman crypto owners plan to increase crypto holding in 2023

About 65,000 Oman residents own cryptocurrencies, equivalent to 1.9 percent of the population. In a recent survey carried out by Oman based Souq Analyst, the largest investment community in Oman, it was found that 90% of crypto owners’ are between the ages of 18 and 44. Only 8% are over the age of 45.

The survey results also noted that the majority owners are highly educated, with 66% of them holding a bachelor’s degree or higher.

Souq Analyst offers stock market news and analysis, investing ideas, earnings calls, charts and portfolio analysis to its community members. In addition the community offers country specific insights on finance, cryptocurrencies, crowd funding & investing as well as access community events, workshop and webinars.

According to the survey an impressive 97.9% of Omani adults have heard about cryptocurrency, indicating an increasing level of awareness. 55% of respondents report owning cryptocurrency and Bitcoin is the most popular followed by Ethereum, Ripple, Tether and other alternative coins.

Mohammed Al-Tamami Co-founder & Chief Commercial officer of Mamun and Founder of Souq Analyst, told LaraontheBlock, “Firstly and foremost data like this is generally useful to everyone. It also offers insights into some unique trends that you didn’t consider say adoption of a certain token or cryptocurrency take XRP ownership in Oman is noticeable according to results in our survey mentioned in the report.”

Over 12% of respondents reported owning more than 10,000 OMR worth of crypto assets equivalent to $26,000. In addition, 62 percent of the respondents plan to increase their cryptocurrency holding in 2023. 

According to the survey, 62% of cryptocurrency owners invest long-term, while 25% use digital assets for learning and education, and 23% trade daily.

Al Tamami founded Souq analyst to be a provider of quality reports on the industry because it’s useful for their own activities in the space including their fund.

The survey is interesting in that it shows that cryptocurrency holders are still bullish on crypto in Oman.

UAE DMCC’s crypto center home to over 500 Blockchain crypto entities an increase of 231 percent

UAE DMCC’s crypto center home to over 500 Blockchain crypto entities an increase of 231 percent

UAE Dubai Multi Commodities Center (DMCC) announced that it had added 3,049 new businesses in DMCC in 2022, and the crypto center is now home to 500 crypto and blockchain entities an increase of 231 percent compared to 2021 when there were 151 crypto blockchain entities by end of year. The growth increase is 23% year-on-year, breaking previous record set in 2021 when DMCC registered 2,485 new members.

As per the press release, the record growth was driven by growing demand from blockchain and Web3 businesses for space at DMCC crypto center representing the largest concentration of crypto and blockchain companies in the region. 

In 2021, UAE DMCC Free Zone and Government of Dubai had added 151 crypto and Blockchain entities out of the 2,485 companies who registered in 2021. With 500 entities now in DMCC crypto center, this is an increase of 231 percent YOY making DMCC have the biggest concentration of blockchain and crypto entities in the region.

DMCC attributed the growth to the expansion of its commodities centers and the launch of the DMCC Crypto Centre. In September 2021 DMCC had licensed 50 Crypto blockchain entities just a few months after the launch of its crypto Centre. By the end of November early December, Ahmed Bin Sulayem had mentioned that DMCC had licensed 130 companies, by the end of 2021 it had reached 151 companies.

Ahmed Bin Sulayem, Executive Chairman and Chief Executive Officer, DMCC, stated, “Backed by a strong regional macroeconomic landscape, DMCC has been efficiently accelerating its growth strategy throughout 2022, focusing on supporting its member companies in high-impact sectors such as web3 and blockchain technologies, commodities and global trade. The unprecedented performance this year reflects this growth acceleration and highlights the significant value that DMCC adds to each of its members.”

DMCC Crypto Centre partnered with global VC firm Brinc to provide its members with access to their USD 150 million accelerator fund. Brinc is a portfolio company of Animoca Brands, a global leader in web3 and blockchain investment. This major partnership supports the long-term and rapid growth of the companies that develop web3 and blockchain technologies and associated value-added services at the DMCC Crypto Centre.

Reflecting DMCC’s drive to add value at the intersection of technology and commodities, DMCC partnered with SafeGold and Comtech Gold to tokenize gold bars based in UAE facilities. Each gold bar will be backed by a DMCC Tradeflow warrant, meaning that the increased ease of trading a tokenized asset is combined with the additional security, transparency and real-asset allocation provided by the Tradeflow warrant.

A look at the top MENA crypto blockchain Google search trends in 2022

A look at the top MENA crypto blockchain Google search trends in 2022

In 2022, it appears there is a high level of public interest from the number of online keyword searches for crypto, crypto payments, blockchain, metaverse, NFTs and other related terms. These keywords, for instance, are the top searches in Arab countries. This comes as no surprise as nations in the MENA region were among the list of countries receiving crypto, with the greater region becoming one of the regions that saw the most growth in crypto regulations.

According to Chainalysis, while the MENA region is one of the smallest crypto markets, its growth to $566 billion received in cryptocurrency between July 2021 and June 2022 shows adoption is rising rapidly.

UAE places 10th for highest search regions for ‘crypto’

As per Google Trends, there were high inquiries for the term “crypto” in the country from December 2021 to December 2022. The high volume of searches for “crypto” in the Arab state placed it at 10th, followed by Morocco at 11th place, Lebanon (17th) and Tunisia (38th). Several MENA countries placed high in search queries among 73 nations.

The UAE went up two places compared to the results of the Google Trend search for the same period in 2021. Before, the country was in 12th place out of the top 63 countries. Lebanon retained its position, while Saudi Arabia dropped out of the list in 2022. The Kingdom placed 45th in 2021.

The UAE has been at the forefront of crypto regulation and licensing. In 2022, it has awarded licenses to top crypto exchanges such as Binance, Kraken and Crypto.com, among other platforms, and it also welcomed hundreds of other crypto and blockchain firms.

In a Crypto Oasis annual report entitled, “Crypto Ecosystem in the UAE,” the country’s booming blockchain and cryptocurrency ecosystem resulted in the employment of 7,000 people across 1,400 blockchain crypto entities currently operating in the country.

Lebanon is also no surprise, given its position as the third largest recipient of crypto in 2022, per a Chainalysis report.

Meanwhile, “Bitcoin” was the most searched keyword in terms of cryptocurrencies in the Arab world, beating “Ethereum.” Bitcoin took 80 percent of the searches, with the UAE settling at 22nd and Morocco at 50th among the top countries that have looked up the term.

In 2021, the UAE, Saudi Arabia and Egypt topped the list of countries that searched for Bitcoin. This could be in connection to Bitcoin being the most invested in cryptocurrency as well as the most volatile in 2022. At the time of writing, Bitcoin has a market cap of $323.1 billion, followed by Ethereum with $148 billion, according to the estimates by CoinMarketCap.

As for Ethereum, it was searched for most in the UAE and Lebanon among Arab countries in 2022. They are followed by Saudi Arabia, Egypt and Morocco.

Notably, only two Arab countries in 2022 had the biggest searches for crypto prices, namely the UAE and Saudi Arabia. Both the UAE and KSA are considered the biggest crypto trading markets in the GCC region. The 2022 Geography of Cryptocurrency report by Chainalysis found that Saudi Arabia was one of the strongest markets, with cryptocurrency transaction volumes surging 195 percent year-on-year.

Overall, the MENA region accounts for 9.2 percent of global cryptocurrency trading, up from 7 percent in 2021.

UAE only Arab country with high searches for ‘crypto payments’

The UAE took the number 2 slot globally in terms of regions with high volume searches for the term “crypto payments,” bested by only Nigeria. The list of 16 countries also included Singapore, the UK, the USA and Germany.

The introduction of the Dubai Virtual Asset Regulatory Authority (VARA) and the openness in the UAE for crypto payments have fueled the curiosity of the community. The country’s friendly stance toward crypto has urged top real estate entities and luxury and F&B outlets to accept crypto as a payment method.

Search for ‘CBDC’ grew exponentially at end of 2022

While more countries explore the opportunities of adopting CBDCs, Google searches for the term surged in November 2022. In terms of countries with the highest searches, the UAE came in at 18th place out of the top 68 countries. Other Arab countries on the list were Morocco (47th), Egypt (65th), and Saudi Arabia (67th).

The UAE completed its first CBDC pilot mBridge this year and is expected to continue to move forward with its implementation.

Morocco and Egypt join regions with top searches for ‘blockchain’

Despite an overall decrease in “blockchain” searches this year, several Arab countries topped the list among 72 countries. The UAE took eighth place, followed by Tunisia (15th), Lebanon (17th), Morocco (21st), Egypt (73rd) and Saudi Arabia (74th).

Notably, Lebanon is looking into blockchain and crypto as a means to solve many of its economic and fiscal problems.

Lebanon: Takes 8th place in NFT searches in top search regions globally

The search for NFTs went down in 2022 compared to 2021. Regardless, NFT appears to be an interest to Lebanon residents, with the country placing in eighth place. Lebanon was followed by other Arab countries, such as Morocco (10th), UAE (11th), and Algeria (57th).

In 2021, the UAE placed seventh among the top 31 countries that searched for “Buy NFTs.” Meanwhile, in 2022, Lebanon came in second, passing the UAE, which placed fourth.

Lebanese artists have increasingly issued NFTs in 2022, with more Lebanon residents purchasing the asset to offset the declining Lebanese currency in addition to their growing interest in this crypto segment. Moreover, several Lebanese NFT marketplaces have launched this year, such as OasisX.

Top google searches for crypto exchanges in MENA

When it came to searches for “crypto exchange,” the UAE stood in fifth place, followed by Lebanon (27th), Morocco (45th) and KSA (47th) among the top 65 countries.

Notably, “Binance” topped the list of searches in 95 regions. In the Arab world, the exchange was mostly searched by people from the UAE (ninth), Morocco (15th), Lebanon (16th), Qatar (36th), Kuwait (45th) and Jordan (56th).

Binance has been ramping up its operations within the MENA region in 2022. Within the year, the largest exchange by trading volume received an MVP license in the UAE and a full operating license in Bahrain.

As for home-grown crypto exchanges, CoinMENA was searched for most in Iran, Bahrain, Qatar and Oman. . Meanwhile, BitOasis and CoinMENA were equally searched for in Oman.

BitOasis also topped the searches in Jordan, Lebanon, Kuwait and Turkey. Noteworthy is that there were only 20 highest search regions for these terms.  BitOasis also had more searches in UAE and KSA than CoinMENA.

BitOasis has a strong presence in the UAE that dates back to pre-license days. According to BitOasis Founder Ola Doudin, they are actively working with regulators in Saudi Arabia and elsewhere across the region to introduce their respective crypto regulations.

UAE is the most metaverse-curious country globally in terms of searches

When it came to global searches for the term “metaverse,” the UAE came in second place, passing Singapore, which placed seventh. In Last year’s trends, there were almost no searches on Google for metaverse before October 2021.

In 2022, Dubai introduced its Metaverse Strategy, which aims to create 40,000 virtual jobs and add $4 billion to the emirate’s economy over the next five years.

Lebanon tops searches for crypto mining

Lebanon becomes the top Arab country in terms of searches for “crypto mining,” placing third. It’s followed by the UAE, Bahrain, Tunisia, Morocco, KSA and Egypt.

Notably, Lebanon had the highest number of crypto-mining activities. This spike can be attributed to residents turning to crypto mining as an alternative source of income, given the financial demise of the Lebanese Lira. Lebanon’s low electricity costs also made the country an ideal destination for crypto miners.

As for UAE, it is also one of the attractive hubs for crypto miners in the MENA region, given its open stance on crypto, as well as the projects being launched in the country.

In conclusion, while crypto had a bearish year in 2022, this was not reflected in the google search trends especially when it comes to Arab countries specifically in the GCC. The MENA region and GCC country residents have shown considerable interest in crypto, NFTs, metaverse, and blockchain. These search trends reflect a growing interest in the region for these technologies.

Looking at these trends one can imply that crypto mining in countries like Lebanon are a big part of the crypto ecosystem. It might also be inferred that crypto payments interest will continue to grow in the UAE as will CBDC interest.

The fact is that despite the tumultuous year that crypto and blockchain went through in 2022, we will see more of them in 2023 and it looks like the MENA and Arab region will lead.

Egyptian Central Bank forms internal and external committees for CBDC implementation study

Egyptian Central Bank forms internal and external committees for CBDC implementation study

Egyptian Central bank has announced that it is currently studying the implementation of CBDC (Central Bank Digital Currency) which should offer a safer and more secure replacement to current cryptocurrencies and the risks associated with them while making use of digital economy.

The Egyptian Central Bank in its 2021 financial stability report stated that it had created an internal and external committee which includes representatives from different Ministerial entities headed by the governor of the Central Bank to study the implementation of CBDCs in Egypt.

It also noted that it is working with external counterparts to study the potential risks and benefits of CBDC implementations. 

Cryptocurrency trading in Egypt is still not regulated and the Central Bank of Egypt has on several occasions mentioned the risk involved in dealing with cryptocurrencies and the fact that it is illegal in the country to do so.

In September, the central bank of Egypt reiterated its warning against dealing in any types of cryptocurrencies, saying that crypto is risky, highly volatile, and is used in financial crimes and e-piracy. At the time the Central Bank of Egypt stated it would fine anyone who violates the Law No 194 of 2020 which prohibits issuing, trading, promoting cryptocurrencies, operating crypto exchanges or any other related activities. The Central Bank will fine violators up to $516,000 ( 10 million LE) or face imprisonment.

The Egyptian central bank had issued a similar warning about cryptocurrencies in January 2018, specifically naming Bitcoin. At that time the Central Bank had noted, “Cryptocurrencies are not backed by any tangible assets and are not supervised by any regulators worldwide, and consequently, they lack the official governmental guarantee and support enjoyed by the other official currencies issued by central banks.”

Yet Egypt has one of the highest crypto usages across Africa and Middle East. In January 2022, TripleA published a report which noted that Morocco topped the Arab countries in terms of crypto ownership, followed by Egypt, then UAE and KSA. The report stated that in 2021 global crypto ownership was estimated at an average of 3.9 percent, 300 million crypto users and 18,000 businesses already accepting crypto payments.

Egyptian national Husayn Hashim, Listing manager of Betconix crypto exchange regulated out of Estonia, states, “The Central Bank of Egypt’s move comes within the framework of the Egyptian government’s efforts to shift to digital payments and achieve financial inclusion. The move is also in line with the growth in the number of Egyptian cryptocurrency traders, as according to the latest estimates, about 1.8% of Egyptians trade cryptocurrencies despite the Egyptian government’s ban on that. I believe that the Egyptian government will soon legally allow the trading of digital currencies after completing the issuance of the legislation regulating this.”

Central Bank of Morocco ends 2022 with launch of draft crypto bill

Central Bank of Morocco ends 2022 with launch of draft crypto bill

On December 20th, the Central Bank of Morocco represented by its governor Abdellatif Jouahri announced in Rabat Morocco that the draft crypto bill to regulate the use of cryptocurrencies is ready.

The announcement was carried out at the press briefing following BAM’s 4th and final quarterly meeting of 2022. Jouahri stressed that the full draft is ready to put in place a proper regulatory framework.

Jouahri stated, “Discussions are to be held with all stakeholders, including the Moroccan Capital Markets Authority (AMMC) and the Insurance and Social Security Supervisory Authority (ACAPS),” 

“We proceeded to a specific definition of the cryptocurrency and prepared a general public survey that details the specifics and use of this virtual currency in Morocco,” he added.

In June 2022, The Central Bank of Morocco, Bank Al Maghrib, announced during its second quarterly meeting that it would be introducing a cryptocurrency bill soon. Abdul Latif Al Jawhari, Governor of Central Bank of Morocco noted that the crypto CBDC committee created in February 2022 is putting in place an appropriate regulatory framework to combine innovation, tech and consumer protection.

He also noted that the crypto bill is being benchmarked against global experiences with IMF and World Bank. He also noted that this regulatory framework will also update the legislation on the fight against money laundering and terrorist financing.

In March 2022, during a session with media He revealed that the Central Bank of Morocco had created a council headed by him to oversee the required regulations for both cryptocurrencies and CBDCs. He stated, “We are in discussions with the Central Banks of friendly nations such as Switzerland, Sweden, and France as well as international financial institutions such as the IMF and World Bank to learn from their expertise and experience.”

Despite the fact that the Moroccan government considers crypto illegal in the country, Morocco has the highest number of crypto owners within the Arab region, followed closely by Egypt. 2.38 percent of Moroccan population own crypto.