These offerings — spanning gold, cryptocurrencies, real estate, and financial securities — often fall outside the legal framework and can result in serious financial and legal consequences.
The Financial Regulatory Authority (FRA) has issued a renewed advisory urging citizens to stay vigilant against unauthorized individuals and entities promoting investment opportunities, particularly via digital platforms.
These offerings — spanning gold, cryptocurrencies, real estate, and financial securities — often fall outside the legal framework and can result in serious financial and legal consequences.
The FRA highlighted a rise in online advertisements and social media campaigns encouraging the public to deposit funds or participate in investment schemes without appropriate licensing. Such practices, it stressed, are in direct violation of national financial regulations, specifically Capital Market Law No. 95 of 1992 and Law No. 146 of 1988, which govern the collection and use of investment funds.
According to the authority, licensed gold investments in Egypt are strictly limited to three regulated funds. Any other method of gold-based investment, especially those bypassing the FRA's oversight, is deemed unlawful and potentially fraudulent.
The FRA also issued a strong warning against dealing in virtual currencies.
It emphasized that cryptocurrencies carry exceptionally high risk due to their speculative nature, susceptibility to financial crime, and lack of tangible backing.
Engaging in or promoting crypto trading without a license is punishable by law, with penalties ranging from EGP 1 million to EGP 10 million or imprisonment.
To empower consumers and reinforce transparency, the FRA has launched several initiatives. A newly updated section on its website now lists all licensed non-banking financial service providers. Additionally, the authority is compiling a public “watchlist” of unauthorized operators identified through complaints and verified investigations.
Citizens are encouraged to report any suspicious financial offers by sending supporting evidence to the FRA’s official reporting email: [email protected]. The authority continues to take legal measures against platforms and individuals operating without approval.
Thousands of Egyptians were affected by fake investment platform FBC back in February, with estimates of around $6 billion in losses. The platform, which promised financial rewards for completing tasks such as watching advertisements on YouTube, suddenly shut down, leaving countless users unable to access their funds.
