3 Million Crypto Holders in Egypt Despite Complete Ban

It sounds impossible: 3 million crypto holders in a country where owning Bitcoin or Ethereum is illegal. Yet, whispers of this number keep popping up in forums, Telegram groups, and local news outlets. The truth? No one knows for sure. But what we do know is this: Egypt has one of the strictest crypto bans in the world-and people are still buying, holding, and trading anyway.

How Egypt Banned Crypto-And Why

In 2020, Egypt’s Central Bank of Egypt (CBE) dropped a legal bomb. Under Law No. 194, Article 206, it became illegal for anyone-individuals, banks, or businesses-to issue, trade, promote, or operate any platform involving cryptocurrencies. No exceptions. No gray areas. Just a flat-out ban.

The reasons were clear to regulators. Cryptocurrencies are volatile. They’re anonymous. They don’t answer to any government. And in a country where the Egyptian pound has been shaky for years, officials feared crypto could destabilize the entire financial system. They worried about scams, money laundering, and people losing life savings to pump-and-dump schemes.

The penalties? Harsh. Violators face prison time and fines between EGP 1 million and EGP 10 million ($32,000 to $320,000 USD). That’s not a slap on the wrist. That’s a career-ending, life-altering punishment. And yet, people are still doing it.

Why People Keep Buying Crypto in Egypt

To understand why crypto is still alive in Egypt, you have to understand the economy. Inflation hit 35% in 2024. The Egyptian pound lost over 50% of its value against the dollar since 2022. Salaries haven’t kept up. Savings evaporate in banks. People are desperate.

Crypto isn’t about getting rich overnight for most Egyptians. It’s about survival. Bitcoin becomes a digital savings account. USDT (Tether) becomes a way to protect money from devaluation. Peer-to-peer trading on platforms like Paxful and LocalBitcoins is the new underground banking system.

You won’t find crypto ATMs in Cairo. You won’t see Coinbase ads on TV. But you’ll find young men in coffee shops in Alexandria using WhatsApp to send USDT to friends in Turkey, then cashing out in person. You’ll find women in Upper Egypt trading crypto for gold, groceries, or medical supplies. It’s not glamorous. It’s not legal. But it’s real.

The 3 Million Claim-Fact or Fiction?

The number “3 million crypto holders” doesn’t come from any official report. The Central Bank of Egypt doesn’t track it. No credible research group has published it. Even the IMF hasn’t confirmed it.

But here’s what we can infer: Egypt has a population of over 110 million. About 60% are under 30. Over 70% have smartphones. Internet penetration is growing fast. And according to a 2024 Chainalysis report, Egypt ranked #7 globally in crypto adoption by transaction volume-even though it banned it.

If you look at P2P trading volumes on platforms like Paxful, Egypt consistently ranks among the top 5 countries in the world for peer-to-peer Bitcoin trades. In 2024, Egyptians traded over $1.2 billion worth of crypto via P2P channels. That’s not a trickle. That’s a flood.

So while “3 million” might be an estimate, it’s not baseless. If 3% of Egypt’s population is actively trading or holding crypto, that’s over 3 million people. And given how widespread the activity is, that number might even be low.

How It Works: The Underground System

There’s no app. No exchange. No bank integration. Just people.

Here’s how it works:

• You buy USDT from someone in a Facebook group using mobile money (Fawry or Vodafone Cash).
• You store it in a Trust Wallet or MetaMask-no registration required.
• You send it to a friend in Dubai who cashes it out for you in cash.
• You use that cash to pay rent, buy food, or send money home.

It’s not perfect. It’s risky. If the police raid a P2P meetup, you could lose everything. But for many, the risk is worth it.

Some traders use VPNs to access international exchanges. Others trade directly through Telegram bots. A few even use crypto to pay for freelance work on Upwork or Fiverr, converting earnings into stablecoins before withdrawing.

What the Government Is Doing About It

The Egyptian government isn’t sitting still. In late 2024, reports surfaced that the CBE was drafting new legislation to allow licensed crypto firms to operate under strict supervision. That’s a huge shift-from total ban to controlled permission.

Why? Because enforcement is failing. You can’t stop people from using WhatsApp. You can’t shut down every Telegram channel. You can’t arrest 3 million people.

The government’s real fear isn’t crypto itself. It’s losing control over money. If people stop using the pound, the central bank’s power crumbles. So they’re trying to get ahead of the curve-by regulating, not banning.

But until that law passes, crypto remains illegal. And the crackdowns are real. In 2024, Egyptian authorities shut down 12 P2P trading hubs in Cairo and Alexandria. They froze bank accounts linked to crypto transfers. They arrested at least 87 people for “illegal financial activity.”

What This Means for the Future

Egypt’s crypto story isn’t about defiance. It’s about necessity.

Countries like Nigeria, Vietnam, and Argentina saw crypto adoption rise because of economic stress. Egypt is no different. The ban didn’t kill crypto-it pushed it underground. And underground movements are harder to kill than open ones.

The real question isn’t whether 3 million people hold crypto in Egypt. It’s whether the government will keep fighting a losing battle-or finally admit that the future of money is already here.

If Egypt legalizes crypto under strict rules, it could become a financial hub for North Africa. If it doesn’t, it risks becoming a black market economy with no oversight-where scams thrive, and ordinary people pay the price.

What’s Next?

The next 12 months will be critical. If the new licensing law passes, Egypt could become the first Arab country to embrace crypto legally. If it doesn’t, the underground market will keep growing-and so will the risks.

For now, crypto in Egypt exists in a strange space: illegal, widespread, and utterly unavoidable. The numbers might be fuzzy. But the reality? It’s clear.