FRA cautions citizens against fake investment platforms

 Amid a surge in digital promotions for high-return investments, the Financial Regulatory Authority (FRA) has once again cautioned the public against interacting with unapproved individuals or businesses offering financial opportunities online.

The regulator warned that these schemes—ranging from gold and cryptocurrency investments to real estate and securities—often bypass regulatory oversight and violate existing financial laws.

The FRA noted a growing number of online ads and social media posts that entice citizens to commit funds to ventures lacking the necessary licenses.

These unauthorized practices breach key provisions of Egyptian law, including the Capital Market Law No. 95 of 1992 and Law No. 146 of 1988, both of which strictly govern who can legally raise and manage investment capital.

According to the authority, licensed gold investments in Egypt are strictly limited to three regulated funds. Any other method of gold-based investment, especially those bypassing the FRA's oversight, is deemed unlawful and potentially fraudulent.

The FRA also issued a strong warning against dealing in virtual currencies.

It emphasized that cryptocurrencies carry exceptionally high risk due to their speculative nature, susceptibility to financial crime, and lack of tangible backing.