Stablecoin issuer / redeemer in Syria
Issues a fiat-pegged stablecoin to the public, operates redemption, and holds reserves backing the float.
Stablecoin issuer is not permitted in Syria.
Verdict Details
- Permitted
- no
- Local entity required
- No
- Licensing burden
- High
- Last updated
- 2026-07-13
AML Obligations
- None applicable — the activity is prohibited. Engaging in stablecoin issuance would violate Presidential Decree No. 4 of 2021 and Law No. 36 of 2022.
- General Syrian AML law (Legislative Decree No. 33 of 2005, as amended by Law No. 33 of 2014) applies to regulated financial institutions, but stablecoin issuers cannot lawfully exist to be subject to it.
- If attempted, the operator would face criminal penalties (imprisonment and fines) under Law No. 36 of 2022, not AML compliance obligations.
Key Restrictions
- Total prohibition: Issuing, promoting, trading, or using any virtual currency — including stablecoins — is illegal under Presidential Decree No. 4 of 2021 and Law No. 36 of 2022.
- No licensing or registration regime exists for digital assets — the regime is one of outright prohibition.
- No reserves, segregation, audit, or redemption rights frameworks exist because the activity itself is not legally permitted.
- Syria is subject to international sanctions, creating additional legal and compliance barriers beyond domestic law.
Key Risks
- Criminal prosecution: Violators face imprisonment and hefty fines under Law No. 36 of 2022.
- Asset blocking: Funds and accounts related to crypto activities may be blocked by authorities.
- International sanctions risk: Syria's sanctions status makes any crypto activity involving Syrian persons or territory extremely high-risk from a global compliance perspective.
- No consumer protection or legal recourse for stablecoin holders — all transactions occur outside the legal framework.
- No foreseeable regulatory change — no pending legislation to legalize or regulate stablecoins or digital assets.
Evidence
This verdict synthesizes the following facts. Each fact links to its primary source(s).
Stablecoins are not officially classified under any of these categories within a regulatory framework, as they are not recognized or permitted to operate.
They are treated as unauthorized digital currencies or virtual assets, subject to a general prohibition.
Presidential Decree No. 4 of 2021 (amending Law No. 34 of 2005 - Anti-Money Laundering and Counter-Terrorist Financing Law): This is the cornerstone of the prohibition.
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.
Not applicable. There is no licensing regime for stablecoin issuers, as the issuance and operation of stablecoins are illegal.
Not applicable. Given the prohibition, there are no legally recognized redemption rights for stablecoin holders in Syria. Any transactions or holdings are outside the legal framework and offer no consumer protection or legal recourse.
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.
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.
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.
No specific framework: Given the outright ban on cryptocurrency, there is no specific capital gains tax framework for virtual assets in Syria.
Verdict Attribution
- Source:
- AI-Generated · Unreviewed
- AI synthesized:
- 2026-07-13 (deepseek-chat)
- Last updated:
- 2026-07-13
- Confidence:
- high
This verdict was produced by an AI model from the underlying facts. Confirm with counsel before relying on it for material decisions.
Stablecoin issuance is prohibited in Syria — the jurisdiction has no licensing regime for virtual assets, and all dealing in cryptocurrencies (including issuance, trading, promotion, and use) is criminalized under Presidential Decree No. 4 of 2021 and Law No. 36 of 2022, with penalties including imprisonment, fines, and asset blocking.
Questions this verdict aims to answer
- What e-money or banking license is required to issue?
- What reserve composition, segregation, and audit rules apply?
- What redemption rights must be granted to holders?
- Are foreign-issued stablecoins permitted for use locally?