Answer ... The fintech space is governed by numerous laws and regulations, including the following:

• the Non-cash Payment Methods Law (18/2019);
• the Central Bank of Egypt (CBE) and Banking Sector Law (88/2003) and its Executive Regulation;
• the E-signature Law (15/2004) and its Executive Regulation;
• the Non-Financial Markets and Instruments Law (10/2009);
• the Microfinance Law (141/2014;
• the Trade Code (17/1999);
• the Consumer Finance Law (18/2020);
• the Cybercrime Law (175/2018);
• the Investment Law (72/2017) and its Executive Regulation;
• the Consumer Protection Law (181/2018) and its Executive Regulation;
• the Small and Micro-Sized Enterprises Law (141/2004) and its Executive Regulation;
• the Telecoms Law (10/2003);
• the Media Law (180/2018);
• the Capital Market Law (95/1992) and its Executive Regulation;
• the Movable Collaterals (Securities) Law (115/2015) and its Executive Regulation;
• the Anti-money Laundering Law (80/2002) and its Executive Regulation;
• the Public Entities Contracts Law (182/2018) and its Executive Regulation; and
• Presidential Decree 89/2017 founding the National Payments Council (NPC).

Globally, the banking and finance sector is evolving rapidly, not least due to the incursions of fintech players. Egypt, which has seen two recent revolutions in 2011 and 2013, has likewise been affected by these dynamics, as well as local political challenges. In response to a request from the CBE, the government has proposed a new draft Banking Law, based on guidance issued by international consultancy firms; a comparative study of other countries’ laws; international standards, the Basel Framework; recommendations of the Organisation for Economic Co-operation and Development (OECD), the World Bank Group and the International Monetary Fund; and recommendations made by the banks that are registered with CBE.

As per the Egyptian Constitution, the new draft Banking Law was submitted to the Egyptian House of Representatives for review and approval. After a review of almost five months, the Egyptian House of Representatives introduced a number of amendments to the new draft Banking Law, which was approved in principle by the Egyptian House of Representatives on 5 May 2020.

Answer ... Yes, special regimes apply to several areas of the fintech space, including the following:

• Capital markets:
• • sales and trading, including short selling; and
  • infrastructure tools.
• Lending:
• • marketplace lending.
• Payments/billing:
• • payment processing, including technical payment aggregators and payment facilitators, contactless payments, prepaid cards and mobile payments.
• Personal finance:
• • tools to manage bills and track personal and/or credit accounts.
• Regtech:
• • regulatory compliance software.

Answer ... Several bodies are responsible for enforcing the fintech-related laws and regulations, including the following:

• The CBE is empowered by the Banking Law to regulate bank accounts and banking transactions, among other things.
• The Information Technology Development Agency is empowered by the E-signature Law to promote and develop the IT and communication industry, support small and medium-sized enterprises in using e-transactions and regulate e-signature services activities, among other things.
• The Financial Regulatory Authority (FRA) is empowered by the FRA Law to license non-banking financial activities and ensure the protection of stakeholders within the non-banking financial market, among other things.
• The NPC is empowered by Presidential Decree 89/2017 to reduce the use of cash outside the banking sector, support and encourage the use of electronic payment methods and channels, and protect users of all payment system and services.
• The National Telecommunication Regulatory Authority is generally empowered by the Telecoms Law to regulate and improve telecommunications services.

Answer ... All regulators recognise the rapid evolution of the fintech space worldwide. This is why, for example, the CBE has recently proposed a new draft of the Banking Law that includes a chapter regulating fintech, including the possibility to issue cryptocurrencies for the first time in Egypt.

This approach is also reflected in a number of projects and regulations adopted by the CBE and the FRA.

The Egyptian government has taken steps to keep pace with the evolution of the fintech space and avoid unnecessary bureaucracy in order to attract more foreign direct investment to Egypt.

Answer ... There is no trade association dedicated to fintech specifically. However, fintech falls within the activities of some trade associations, such as the Federation of Egyptian Banks.