Regulatory Alerts2021-01-01
Palestine Monetary Authority Circular No. 152/2021 on Virtual Currencies
The Palestine Monetary Authority issued Circular No. 152/2021 to prohibit all licensed payment service companies in Palestine from dealing in, exchanging, or processing any transactions involving virtual currencies. The directive requires firms to deploy automated controls to block such activities and to actively educate clients about the severe financial risks, absence of regulatory oversight, and high susceptibility to fraud and cybercrime associated with these assets. By classifying virtual currencies as highly volatile, unguaranteed, and prone to illicit financing, the circular reinforces a comprehensive operational ban designed to safeguard public funds and maintain financial system integrity.
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, prevent them from falling victim to fraud, and mitigate the risks associated with the use of these currencies in illegal activities and operations, we emphasize the necessity to comply with the following:
-
Prohibition of 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 currencies, or conducting other financial transactions.
-
Raising customer awareness regarding the risks of dealing in 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 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 operations.
Supervision Group
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