the draft law aims to use modern innovative technology such as AI, record keeping for transactions (blockchain) and digital platforms
The Egyptian Financial Regulatory Authority’s (FRA) Board of Directors has approved a draft law to regulate and develop the use of financial technology (fintech) in non-banking financial activities. FRA Chairperson Mohamed Omran said that the approval will support the Egyptian state’s adoption of a policy providing a remote work environment based primarily on the safe exchange of information and supervision.
According to Omran the draft law will enable the use of modern and innovative technology and facilitate a supervisory role over subject entities. He also mentioned it will ensure transparency and proper governance for the non banking financial markets.
It will also ensure adherence to the standards of transparency and governance, protection of dealers in non-banking financial markets, and the adoption of modern technologies to facilitate dealing with the non-banking financial sector. Spending on IT in the MENA region in 2020 is estimated to be about $160 billion an increase of 2.5% since 2019
Omran said that the draft law defines financial technology as a mechanism that uses modern technology in the non-banking financial sector to support and facilitate financial and financing activities and services. Technology will be used through applications, programmes, digital platforms, artificial intelligence (AI) or electronic records to consider transactions which could actually mena blockchain. The use of fintech facilities allows companies and projects to enter the market by providing innovative products and services.
The FRA is the designated administrative body supervising the foundation of companies wishing to engage in non-banking financial activities using digital fintech solutions, including crowd-funding companies.
Egypt has been dabbling with Blockchain and digital currencies for sometime but with no official implementation. Earlier this year news came out that the Central Bank of Egypt was implementing blockchain for KYC while Egypt’s A Ahli Bank signed up with Ripple. Some Egyptian founded startups like Tribal Credit who work in the fintech space have also received funding from MENA based investors.