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Palestine: crypto & digital assets regulation

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Virtual asset activities banned for regulated entities; licensing framework established under 2022 National Payments Law

Lead regulator:
Palestine Monetary Authority
Key law:
Law No. 41 of 2022 Concerning National Payments
Last updated:
2026-07-12

The Palestine Monetary Authority (PMA) is the sole regulator for the national payments system and emerging financial technologies under Law No. 41 of 2022. This legislation establishes a comprehensive licensing framework for payment services, fintech companies, and virtual asset providers, mandating strict compliance with anti-money laundering standards defined in Law No. 39 of 2022.

Despite the creation of a licensing regime for virtual asset providers, the PMA has issued a series of circulars (starting in 2017 and reinforced in 2023) that strictly prohibit all licensed banks, exchange offices, payment service companies, and specialized lending institutions from engaging in any transactions involving virtual currencies. These prohibitions require financial institutions to implement automated controls to block such activities.

Consequently, while the legal infrastructure for licensing virtual asset service providers exists, the operational reality for regulated financial entities is a total ban on dealing in, exchanging, or facilitating virtual assets. The regulatory stance prioritizes financial stability and AML/CFT compliance over the facilitation of crypto activities within the formal financial sector.

Who regulates

  • Palestine Monetary Authority

    Primary supervisor of national payments, fintech, and virtual asset providers; enforcer of AML/CFT regulations.

    [1][2][3][4][5]

Core laws & rules

  • Law No. 41 of 2022 Concerning National Payments (2022)

    Establishes the comprehensive legal framework for national payments, electronic transactions, and emerging financial technologies, including virtual assets, under the exclusive supervision of the PMA.

    [2][3][4][5]

  • Law No. 39 of 2022 on Combating Money Laundering and Terrorist Financing (2022)

    Provides the comprehensive legal framework for AML/CFT, defining key terms and designating the PMA as the supervisor.

    [1]

Licensing & registration

  • Virtual Asset Providers

    Law No. 41 of 2022 mandates licensing for virtual asset providers, establishing definitions and licensing requirements within the national payments framework.

    [2][3][4][5]

  • Payment Service Companies

    Licensing required for payment service companies under Law No. 41 of 2022 and Instructions No. 6 of 2021, though these entities are explicitly prohibited from dealing in virtual currencies.

    [6][7][8]

Restrictions & warnings

  • All licensed banks, exchange offices, payment service companies, and specialized lending institutions are strictly prohibited from engaging in, exchanging, or facilitating any transactions involving virtual currencies. Institutions must implement automated controls to block such activities.

    [9][10][11][12][13][14][7][8][15][16][17][18]

Direction of travel

  • The regulatory direction of travel maintains a strict prohibition on virtual asset activities for regulated financial entities, prioritizing AML/CFT compliance and financial stability. While a licensing framework exists for virtual asset providers, the operational ban on financial institutions suggests that any future liberalization would require significant regulatory shifts.

    [9][2]

Sources

  1. Law No. (39) of 2022 on Combating Money Laundering and Terrorist Financing · 2026-01-01
  2. Law No. (41) of 2022 concerning National Payments · 2026-01-01
  3. Law No. 41 of 2022 Concerning the National Payments · 2022-01-01
  4. Circular No. 185-2022 National Payments Law · 2022-01-01
  5. Law Decree No. 41 of 2022 Concerning National Payments · 2022-01-01
  6. Instructions No. 6 of 2021 Regarding the Regulation of Operations of Payment Service Companies (1) · 2021-01-01
  7. Instruction No. 6 of 2021 Regarding the Regulation of Payment Service Companies' Business · 2021-01-01
  8. Circular No. 152/2021 on Virtual Currencies · 2021-01-01
  9. Circular No. 65 Virtual Assets and Currencies · 2023-01-01
  10. Circular No. 153 (2021) on Virtual Currencies · 2021-01-01
  11. Palestine Monetary Authority Circular No. 153/2021 on Virtual Currencies · 2021-01-01
  12. Palestine Monetary Authority Circular No. 152/2021 on Virtual Currencies · 2021-01-01
  13. Circular No. 151/2021 on Virtual Currencies · 2021-01-01
  14. Circular No. 141/2021: Virtual Currencies · 2021-01-01
  15. Circular No. 61/2017 on Virtual Currencies · 2017-01-01
  16. Circular No. 60 (2017) on Virtual Currencies · 2017-01-01
  17. Palestine Monetary Authority Circular No. 61/2017 on Virtual Currencies · 2017-01-01
  18. Palestine Monetary Authority Circular No. 59/2017 on Virtual Currencies · 2017-01-01

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This guide is compiled automatically from 18 primary-source documents published by Palestine's regulators, reviewed by RegAlert, and refreshed monthly (last updated 2026-07-12). It is not legal advice — always confirm requirements with the regulator or local counsel before acting.