Regulatory Alerts2021-01-01
Palestine Monetary Authority Circular No. 153/2021 on Virtual Currencies
The Palestine Monetary Authority issued Circular No. 153/2021 to prohibit all exchange offices in Palestine from dealing in, exchanging, or processing any financial transactions involving virtual currencies. The directive mandates that institutions implement automated controls to block such activities and explicitly notify clients about the unregulated status, extreme volatility, fraud risks, and potential use of virtual currencies for illicit financing. This measure reinforces previous regulatory guidance to protect citizens' funds and mitigate systemic financial risks associated with digital assets.
Palestine Monetary Authority
PALESTINE MONETARY AUTHORITY
Circular No. (153/2021)
To all exchange offices operating in Palestine
Date: Thursday, July 29, 2021
Subject: Virtual Currencies
Further to Palestine Monetary Authority Circular No. (61/2017), and aiming to safeguard citizens' funds, prevent them from fraud, and mitigate the risks of these currencies being used for illegal activities and operations, we hereby reiterate the necessity to comply with the following:
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Prohibit dealing in virtual currencies of any kind in any form whatsoever, and implement the necessary automated measures and controls to prevent dealing in them, exchanging them for other currencies, or conducting other financial transactions.
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Educate clients about the risks of dealing in virtual currencies, and notify them that providers of these currencies are unlicensed and not subject to oversight by any regulatory authority, and that these currencies:
- Are highly volatile and cause severe financial losses to traders.
- Are not guaranteed by any entity.
- Are susceptible to fraud and cybercrime, making it difficult for citizens to trace and recover them.
- May be used to fund illegal activities and operations.
Supervision Department
Palestine Monetary Authority
Ramallah and Al-Bireh Governorate - Palestine P.O. Box 452
info@pma.ps | Fax: +970 2 2415310 | Fax | Tel: +970 2 2415251 | Tel
Gaza - Palestine P.O. Box 4026
Fax: +970 8 2844487 | Fax | Tel: +970 8 2825713 | Tel