Crypto-funded debit card in Syria

None are available or required. Engaging in these activities with cryptocurrencies is generally prohibited under current Syrian financial regulations.

Any entity attempting to operate such services would be doing so outside the legal framework and would face severe legal repercussions.

Neither a registration nor a licensing regime exists for virtual assets. The regime is one of prohibition.

Irrelevant. Since the activities are prohibited, there are no prescribed requirements for capital, AML/KYC policies (specific to crypto, general financial AML/KYC still applies to traditional finance), or local presence for crypto businesses.

There is no application process for cryptocurrency licenses or registrations, as these are not issued.

Central Bank of Syria Circular No. 6/M.A. (2021):

Content: This circular, issued by the CBS, explicitly warns against dealing in cryptocurrencies, stating that they are illegal and involve high risks for users. It clarifies that cryptocurrencies are not recognized as legal tender in Syria and that dealing in them violates Syrian financial laws.

Specific Prohibition: It prohibits individuals and entities from creating, promoting, trading, or using any form of virtual currencies within Syria.

Consequences: The circular warns of legal prosecution for those found violating these directives.

Legal prosecution: Imprisonment and fines.

Blocking of funds and accounts.

Prohibition: The Central Bank of Syria (CBS) has repeatedly issued warnings and directives prohibiting the use and trading of cryptocurrencies.

Criminalization: Law No. 36 of 2022 (issued in November 2022) explicitly criminalizes various activities related to cryptocurrencies, including their use as a payment method, trading, and promotion. Penalties are severe, including imprisonment and hefty fines.

There are no legal AML/KYC requirements because the service itself is prohibited.

Engaging in such activities carries significant criminal penalties under Law No. 36 of 2022.

Furthermore, Syria is subject to international sanctions, making any financial activity, especially involving novel assets like crypto, extremely high-risk from an international compliance perspective.

There are provisions for freezing funds suspected of being related to money laundering or terrorism financing.

Content: This decree criminalized dealing in, promoting, or trading unauthorized digital currencies within Syria. It introduced severe penalties, including imprisonment and hefty fines, for individuals and entities involved in such activities. The primary aim is to prevent money laundering, terrorist financing, and capital flight, as well as to protect the national currency (Syrian Pound) from further instability.

Not applicable. Since stablecoins are prohibited, there are no legal provisions or requirements for reserves.

2018 Decree: The CBS initially issued Circular No. 2/M.J.D. of 2018 (though exact English references and stable URLs are hard to find, this is widely reported) prohibiting dealing in cryptocurrencies.

No specific framework: Given the outright ban on cryptocurrency, there is no specific capital gains tax framework for virtual assets in Syria.

Illegal activity: Any profits made from crypto trading would arise from an illegal activity and would not be subject to a legal tax regime. Instead, individuals caught dealing in crypto could face criminal charges and confiscation of assets.

Outcome: All cryptocurrency activities (trading, mining, possession, promotion) are officially illegal within Syria. This directive empowers authorities to crack down on anyone found dealing with digital assets. Reports from within Syria, though anecdotal and difficult to verify with official sources, suggest individuals have faced arrest and asset seizure for cryptocurrency-related activities following this ban.

Al-Monitor: "Syria’s central bank bans cryptocurrency trading" (February 2, 2023)

Reuters: "Syria's central bank bans cryptocurrency trading" (January 31, 2023)