Regulatory Alerts2021-01-01
Circular No. 150 Virtual Currencies
The Palestine Monetary Authority mandates that all banks operating in Palestine strictly prohibit any form of dealing, exchanging, or processing transactions involving virtual currencies. The directive requires financial institutions to implement automated controls to block customer accounts from trading or converting these assets and to educate clients on their unregulated status, extreme volatility, and susceptibility to fraud and cybercrime. This enforcement aims to protect citizens' funds from financial losses and prevent the use of virtual currencies for illegal activities.
Palestine Monetary Authority
PALESTINE MONETARY AUTHORITY
Circular No. (150/2021)
To all banks operating in Palestine
Date: Thursday, July 29, 2021
Subject: Virtual Currencies
In reference to Palestine Monetary Authority Circular No. (59/2017), and in order to safeguard citizens' funds, prevent them from fraud, and mitigate the risks of these currencies being used for illegal activities and operations, we reiterate the necessity to comply with the following:
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Prohibit dealing in any form with virtual currencies of all kinds, and implement the necessary automated measures and controls to prevent the use of customer accounts for trading them, exchanging them for other currencies, or conducting other financial transactions.
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Educate customers about the risks of dealing with virtual currencies, and clarify to 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 those who trade 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 operations.
Supervision Department
Palestine Monetary Authority
Note Ramallah and Al-Bireh - Palestine P.O. Box 452
info@pma.ps | Fax: +970 2 2415310 | Tel: +970 2 2415251
Gaza - Palestine P.O. Box 4026
Fax: +970 8 2844487 | Tel: +970 8 2825713
www.pma.ps