Law No. 194 Egypt – Overview & Crypto Impact

When you hear about Law No. 194 Egypt, the 2023 Egyptian statute that defines the legal status, licensing, and tax treatment of cryptocurrencies and digital assets. It’s also known as Egypt Crypto Law 194, you’re looking at a rule that tries to bring order to a wild market. Egyptian cryptocurrency regulation, covers exchange licensing, AML/KYC standards and the definition of virtual assets in the country is the first piece of the puzzle. Next comes digital asset tax compliance, the set of tax obligations for holders, traders and service providers under Law No. 194, which determines when gains are taxable and how to report them. Finally, the broader clash between SEC vs CFTC, the US regulatory rivalry over who controls digital asset markets offers a useful lens to compare Egypt’s approach with global trends. All these entities intertwine, creating a framework that affects everything from token listings to airdrop eligibility.

The law forces crypto exchanges operating in Egypt to obtain a specific licence, tighten KYC checks, and submit regular transaction reports. That requirement directly links Law No. 194 Egypt to the concept of digital asset tax compliance, because licensed platforms must also withhold and remit taxes on behalf of users when thresholds are met. For traders, this means that a simple buy‑sell cycle now triggers a compliance checklist: verify that the exchange is licensed, confirm that your wallet address is registered, and keep a record of every transaction for tax reporting. Airdrop participants aren’t exempt either; the law treats airdropped tokens as taxable income if the recipient is an Egyptian resident, meaning you must declare the fair market value at the time of receipt. This ties the airdrop landscape directly to both the Egyptian regulatory framework and the broader international debate represented by the SEC vs CFTC rivalry, where the US is still deciding whether airdrops fall under securities law or commodity regulation.

Internationally, the SEC’s focus on securities and the CFTC’s focus on commodities create a split that many jurisdictions, including Egypt, must navigate. Law No. 194 Egypt mirrors this split by classifying some tokens as “utility” and others as “investment” assets, each with its own licensing and tax rules. For example, utility tokens that power a platform’s functionality often escape the stricter securities‑type licensing, whereas tokens marketed as profit‑sharing instruments face the full licensing regime. This distinction influences how DeFi projects structure their offerings in Egypt, pushing them to be clear about token purpose to avoid regulatory friction. The law also encourages transparency by mandating public disclosures for token issuers, a move that aligns with the SEC’s emphasis on investor protection and the CFTC’s demand for market integrity.

Below you’ll find a curated collection of articles that dive deeper into each of these angles – from step‑by‑step guides on filing crypto taxes in Egypt to analyses of how Law No. 194 compares with US regulatory battles. Whether you’re a trader, an exchange operator, or just curious about the evolving legal landscape, these pieces will give you practical insights and actionable advice to stay compliant and make informed decisions.