Regulatory Alerts2021-01-01
Circular No. 152/2021 on Virtual Currencies
The Palestine Monetary Authority issued Circular No. 152/2021 to prohibit all payment service companies operating in Palestine from dealing in, exchanging, or facilitating any form of virtual currencies. The directive mandates these firms to implement automated controls to block such transactions and explicitly requires them to educate customers about the severe financial risks, lack of regulatory oversight, vulnerability to fraud and cybercrime, and potential use in illicit financing associated with these assets. Compliance with these prohibitions and consumer protection measures is strictly enforced to safeguard public funds and mitigate systemic financial risks.
Palestine Monetary Authority
PALESTINE MONETARY AUTHORITY
Circular No. (152/2021) To all payment service companies operating in Palestine Date: Thursday, July 29, 2021
Subject: Virtual Currencies
In order to safeguard citizens' funds, protect them from fraud, and mitigate the risks of these operations being used for illegal activities and undertakings, we emphasize the necessity of adhering to the following:
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A prohibition on dealing in any form with virtual currencies of all kinds, and implementing the necessary automated measures and controls to prevent dealing in them, exchanging them for other operations, or conducting other financial transactions.
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Raising customer awareness regarding the risks of dealing in virtual currencies, and clarifying to them that providers of these operations are unlicensed and not subject to oversight by any regulatory authority, and that these operations:
- Are highly volatile and cause severe financial losses to those dealing in them.
- 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 undertakings.
Supervision Group Palestine Monetary Authority
Note: Ramallah & Al-Bireh Governorate - Palestine P.O. Box 452 P.O. Box Palestine - Ramallah & Al-Bireh Governorate info@pma.ps | Fax: +970 2 2415310 | Fax | Tel: +970 2 2415251 | Telephone Gaza - Palestine P.O. Box 4026 P.O. Box Palestine - Gaza Fax: +970 8 2844487 | Fax | Tel: +970 8 2825713 | Telephone www.pma.ps