• Dr. Omran: FRA stresses on the illegitimacy of cryptocurrencies and warns against using them in the emerging markets
Dr. Mohamed Omran – FRA’s Chairman announces that Egypt will host for the first time in its history and the history of the World Federation of Exchanges, meetings of emerging markets in the Greater Middle East (GEM) and the annual meeting of the Africa / Middle-East Regional Committee (AMERC) at the same time in November 2020.
This came at the end of the IOSCO meetings held in St. Petersburg, Russia, in which FRA’s Chairman and Vice-Chairman participated in the meetings. The meetings dealt with the latest developments in emerging markets and challenges facing them especially with the use of regulatory technologies (Regtech) and financial technological systems (Fintech) in view of the importance of achieving the sustainable development goals.
Dr. Omran emphasizes that FRA stresses on the illegitimacy of cryptocurrencies and warns against trading in emerging markets, because of the wide range of financial fraud, especially it is not subjected to any regulatory or legislative frameworks.
FRA’s Chairman says that the Authority renews this warning, especially after the rapid transformation in technology and what is known as the digital revolution, noting that it has become an important variable in the financial services industry and related products, including the use of virtual currencies or digital currencies.
It is worth mentioning that Dr. Omran issued a warning – at the local and international level – by the end of 2017 on dangers of cryptocurrencies and associated transactions in the light of the fact that they are not subjected to the control of any entity inside Egypt and constitute a circumvention of the official monetary system under control and the associated anti-money laundering laws.
It is worth mentioning that the IOSCO is the most important global organization that establishes the bases and rules of financial markets and the standards that each country seeks to adhere to in order to ensure fairness, transparency and efficiency of markets and management of associated risks. The IOSCO’s membership includes about 95% of the financial markets in the world, represented by about 115 regulatory bodies and the membership of a number of international and regional financial organizations. Egypt is one of the signatories to the multilateral memorandum of understanding adopted by the IOSCO, which serves as a framework for international cooperation in the field of information exchange related to combating violations of securities laws, and how to consult, cooperate and exchange information to tighten control over Stock Markets.
In addition, Egypt maintains its seat in IOSCO’s board for the third round in a row after winning in elections that were held in April 2018.