ArabFinance: The Egyptian cabinet approved the draft law that will govern the fintech industry, according to the cabinets statement on April 6th.
The law will regulate the use of fintech to deliver non-banking financial services (NBFS) in a bid to promote financial inclusion and expand the number of beneficiaries.
The bill authorizes the Financial Regulatory Authority (FRA) to license and regulate the NBFS businesses and fintech startups.
The FRA will also have supervisory powers over the sector to ensure companies adhere to transparency and governance standards, in addition to protecting consumer rights.
The new regulation reportedly covers crowd funding, robo-advisory, nano-finance and insurtech, and introduces penalties for regulatory breaches including imprisonment or fines of EGP 200,000 to EGP 1 million.
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