Is Crypto Legal in Palestinian Territory?

Cryptocurrency is not officially recognized as legal tender in Palestinian territory, and the Palestine Monetary Authority (PMA) has not established comprehensive regulatory frameworks for digital currencies. The PMA has not issued any licenses or authorization to any entity for dealing in cryptocurrencies, leaving crypto usage in a legal gray area (1). Despite the lack of official recognition, individuals continue to adopt cryptocurrency informally to bypass financial constraints, though they operate without legal protections (1).

The Palestinian Monetary Authority is currently considering the potential issuance of a digital currency as part of efforts toward monetary independence. Two studies on cryptocurrencies are underway with no decision made yet, but the hope is to eventually use digital currency "for payment systems in our country and hopefully with Israel and others to use for actual payments," according to PMA Governor Feras Milhem (2). The PMA aspires to become a fully-fledged central bank for an independent Palestine, though it currently lacks the authority to issue its own currency under the 1994 Paris Protocol (1).

"Two studies on cryptocurrencies are underway and no decision has been made yet, but the hope is to eventually use digital currency for payment systems in our country and hopefully with Israel and others to use for actual payments."

Palestinians currently lack a sovereign currency and primarily use the Israeli shekel, along with the Jordanian dinar and US dollar for daily transactions. The absence of regulatory clarity means local banks do not support crypto transactions, keeping official usage largely informal (1). Despite this, cryptocurrencies have been utilized across several sectors including cross-border transactions, digital employment for remote freelancers, and charitable donations, allowing funds to reach areas like Gaza despite financial blockades (1). The issuance of a digital currency could send a political signal showing monetary autonomy from Israel, though questions remain about the macroeconomic conditions necessary for such a currency to function effectively as a means of exchange (2).

Source:
https://blog.upay.best/crypto-adoption/palestine/
https://www.arabnews.com/node/1883261/business-economy

Last updated: 19-10-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.