Egypt's Financial Regulatory Authority (FRA) has issued a renewed warning to the public regarding the growing number of unauthorised individuals and platforms promoting financial, investment, and funding products in violation of Egyptian law. These activities, which often take place via websites and social media platforms, include invitations to invest or deposit funds without obtaining the necessary approvals. As a result, participants face significant fraud risks, while promoters may be held legally liable. Unlicensed Fundraising and Public Offerings Prohibited In this context, the FRA confirmed that it has recently detected several entities soliciting public funds or promoting securities without authorisation. It emphasised that public offerings of shares or bonds require prior approval and an officially sanctioned prospectus, in accordance with Capital Market Law No. 95/1992 and Law No. 146/1988 on companies engaged in fund collection for investment purposes. Any violation of these laws may lead to legal prosecution. Unregulated Platforms Face Legal Consequences Moreover, the FRA stated that electronic platforms and companies providing finance or accepting funds for investment without a valid licence will be subject to legal accountability. It therefore urged the public to verify the licensing status of any financial service provider via the FRA's official website. Launch of Negative List of Offenders To further strengthen investor protection, the FRA announced plans to publish a negative list of unlicensed entities engaged in non-banking financial services. This list, based on confirmed citizen reports and internal investigations, aims to alert the public and reduce their exposure to potential scams. Misleading Gold Investment Offers Meanwhile, in response to recent unauthorised gold investment invitations, the FRA clarified that investment in gold is only permitted through officially approved investment funds. Direct transactions between individuals and gold dealers fall outside the FRA's regulatory scope and may carry significant legal and financial risks. Currently, there are three FRA-approved gold investment funds: AZ-Gold Fund, managed by Azimut Asset Management; the National Investment Fund, managed by Al Ahly Financial Investments Management; and the Beltone-Evolve Gold Investment Fund. These funds collectively serve around 200,000 investors with a total investment volume of 2.1 billion Egyptian pounds. Crypto Asset Investment Remains Illegal Furthermore, the FRA reiterated that investing or trading in cryptocurrencies remains illegal under Egyptian law. It warned that cryptocurrencies carry high risks, lack underlying assets, and are frequently associated with cybercrime and fraud. Individuals who promote or deal in these assets without a licence may face imprisonment and fines ranging from 1 million to 10 million Egyptian pounds. Attribution: Amwal Al Ghad English Subediting: M. S. Salama
