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Financial Supervision warns against calls to deal in virtual currencies ... and confirms: They are exposed to fraud

The Egyptian Financial Supervisory Authority has warned investors about the risks of participating in Initial Coin Offering (ICO), which aims to collect money from citizens, and the risks of calls for cryptocurrencies and related transactions in light of the fact that they are not subject to the supervision of any party inside Egypt, and constitutes a fraud on the official monetary system and the related laws and legislation.


The authority confirmed, in a press statement, today, Wednesday, that it has not licensed or legalized these virtual currencies or the products associated with it, and does not agree to deal in or use them, and also considers that the calls to motivate investors to enter these types of transactions, based on the rise of their markets or to ensure Achieving lucrative returns is a form of misinformation that is subject to legal liability.


The Authority stressed that the stock exchange market in Egypt is the Egyptian Stock Exchange - known to all - and the Small and Medium Enterprises Stock Exchange known as the Nile Stock Exchange, and that the executive procedures for the futures and derivatives exchange are currently being completed, in addition to commodity exchanges, without the aforementioned. Specifically, it requires legislation to practice.


The authority noted that it is keen to help create an investment environment capable of attracting money and encouraging the flow of local and foreign investments by protecting dealers in non-banking financial markets, which prompted it to re-launch the warning again in the face of the accelerating changes that the world is witnessing from what is known as the digital revolution and the growing Its uses, and it has become an important variable in the financial services industry and its related products, including the use of cryptocurrency virtual currencies.


And that despite the frantic acceleration of these virtual currencies due to speculation through electronic trading platforms or through some derivative markets that recently opened their doors for trading contracts based on these virtual currencies, ambiguity still surrounds these currencies amid great warnings from many banking and supervisory authorities About it.


The authority added that in light of the operators of these platforms targeting individual investors through promoting these tools via the Internet, and the lack of transparency and protection mechanisms for dealers, there is a wide scope for financial fraud, especially as it is not subject to any regulatory or legislative frameworks.


The Authority called on investors to be careful not to enter this type of high-risk tools as it is a form of gambling, and that those who deal in these currencies are exposed to losing all their money when accepting this high degree of risk, and it is also possible that investors fall into these virtual currencies. In the net of pirates or exposed to huge losses at any time due to any permission or regulation by any of the supervisory authorities in any of the countries of the world.