On-shore VASP in Palestine

No specific licensing framework: There are no dedicated laws, regulations, or licensing procedures specifically for cryptocurrency exchanges, custody providers, or payment processors in Palestine.

Discouragement/Prohibition: The PMA views cryptocurrencies as high-risk, speculative, lacking legal tender status, and outside the regulated financial system. Financial institutions under PMA supervision are generally discouraged or implicitly prohibited from dealing with them.

Exchanges: Not licensed. Any attempt to operate a cryptocurrency exchange legally would likely face significant hurdles due to the lack of a regulatory framework and the PMA's stance.

Custody Providers: Not licensed.

Payment Processors (dealing with crypto): Not licensed. Traditional payment processors are regulated by the PMA, but this framework does not extend to processing payments directly in cryptocurrencies.

Neither exists for crypto specifically. Palestine does not have a "registration regime" or a "licensing regime" for virtual assets or VASPs. The de facto regime is one of caution and unofficial prohibition for regulated entities.

Capital: No specified capital requirements for crypto firms.

AML/KYC: Palestine has general Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) laws and regulations that apply to traditional financial institutions. However, because there's no framework for crypto, these laws are not specifically tailored or applied to crypto service providers in a licensing context. Any entity operating would still be subject to general business registration and potential scrutiny under existing AML/CFT laws if they are found to be facilitating illicit activities.

Local Presence: No specific requirements for local presence for crypto businesses, as they are not formally recognized or licensed.

There is no application process for cryptocurrency licenses in Palestine because such licenses do not exist.

N/A. As there is no specific regulatory framework for licensed VASPs, there is no effective date for the Travel Rule's implementation.

PMA Position: The PMA has explicitly stated that it does not license or supervise any entities dealing with cryptocurrencies and has warned financial institutions against engaging in any transactions related to them. They emphasize the risks associated with price volatility, lack of regulatory oversight, potential for illicit activities, and the absence of an issuing authority.

Regulator Name: Palestinian Monetary Authority (PMA)

Entity Targeted: All financial institutions under PMA supervision, and by extension, the general public within its jurisdiction. Violation Type: Dealing in cryptocurrencies. The PMA considers cryptocurrencies to be highly volatile, prone to speculative risks, lacking legal tender status, and a tool for money laundering and terrorism financing. Penalty Amount: No specific penalty amount against an individual entity has been publicly announced by the PMA for crypto dealing. The implication is that financial institutions dealing in crypto would face regulatory sanctions (e.g., license revocation, operational restrictions) from the PMA. Individuals could face legal consequences under local laws.

Date: The PMA first issued a warning against dealing in cryptocurrencies in 2018 and has reiterated its prohibition multiple times, including within the last three years. For instance, statements reiterating caution or prohibition have been reported in 2021.

Outcome: Cryptocurrencies are not recognized as legal tender in Palestine, and licensed financial institutions are explicitly prohibited from dealing in them. This discourages official adoption and pushes any activity underground.