DeFi protocol frontend 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.

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

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.

Involvement in illegal financial activities, which could also have implications under international sanctions regimes due to Syria's status.

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.

Regulator Name: Central Bank of Syria (CBS)

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)

The National News: "Syria central bank bans cryptocurrency trading" (February 1, 2023)

Explanation: Since cryptocurrencies are prohibited, there are no licensing frameworks for any entities (including financial institutions) to provide custodial services for digital assets. Engaging in such activities would likely be considered a violation of the existing ban.

Status: There is no publicly available information or indication of pending legislation in Syria specifically addressing the regulation or custody of digital assets. Given the current outright ban and the country's economic and political circumstances, the focus remains on enforcing the prohibition rather than developing regulatory frameworks for legal crypto activities.