Regulatory Alerts2021-01-01
Circular No. 153 (2021) on Virtual Currencies
The Palestine Monetary Authority issued Circular No. 153 (2021) to prohibit all banks operating in Palestine from engaging in, exchanging, or facilitating any transactions involving virtual currencies. The directive mandates financial institutions to implement automated controls to block such activities and to actively educate customers about the unregulated nature, extreme volatility, fraud risks, and potential use of virtual currencies for illicit financing. This enforcement 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. (2021/153)
To all banks operating in Palestine
Date: Thursday, July 29, 2021
Subject: Virtual Currencies
In reference to Palestine Monetary Authority Circular No. (2017/61), 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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Prohibition of dealing with virtual currencies in any form whatsoever, of all types, and implementing the necessary automated measures and controls to prevent dealing with them, exchanging them for other currencies, or conducting other financial transactions.
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Raising customer awareness regarding the risks of dealing with virtual currencies, and clarifying 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 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 | Phone
Gaza - Palestine P.O. Box 4026
Fax: +970 8 2844487 | Fax | Tel: +970 8 2825713 | Phone