The main objectives of the law include establishing clear regulatory and supervisory boundaries for both the CBE and the FRA, defining the scope of their jurisdiction
The Central Bank of Egypt (CBE), in collaboration with the Financial Regulatory Authority (FRA), is spearheading a strategic initiative to regulate and advance alternative financing activities and FinTech services linked to banking. The recently finalized draft law, as detailed in the CBE's recent economic magazine, aims to provide comprehensive legislative coverage to govern these financial activities and services.
The main objectives of the law include establishing clear regulatory and supervisory boundaries for both the CBE and the FRA, and defining the scope of their jurisdiction.
It also sets out general rules for the outlined activities and services to safeguard the interests of all participants in the financial landscape and streamlines the licensing process, outlining general requirements and establishing specific timeframes for decision-making.
The law seeks to tighten control over FinTech activities, aligning them with the state's financial and monetary policies to enhance overall financial and monetary stability. It is also expected to address the financing gap for unbanked segments of the country, including individuals and small and micro-enterprises.
The regulatory framework is poised to contribute significantly to the localization of modern FinTech technologies, according to the CBE, fostering their integration into the Egyptian market and supporting digital transformation.
In recent FinTech regulatory news, the FRA set a minimum capital of EGP 15 million for startups looking to practice non-banking financing activities to ensure the companies’ financial solvency and ability to provide their services efficiently.
