---
type: country
domain: crypto-regulation
status: stable
tags: ["crypto-regulation", "middle_east", "menafatf", "restricted"]
aliases: ["PS", "PSE", "فلسطين"]
created: 2026-06-01
updated: 2026-04-02
compile_into: ["[[country--palestine]]"]
sources:
  - name: "https://www.pma.ps"
    url: "https://www.pma.ps"
    type: "official"
---

#  Palestine (PS) — Crypto Regulation

> Cryptocurrency is not legally recognised and operates in a legal grey area in Palestine. The Palestine Monetary Authority (PMA) issues warnings against crypto use citing fraud, volatility, and absence of legal oversight. No formal licensing or regulatory framework exists. Crypto is informally used by Palestinians for cross-border payments, remittances, and humanitarian aid transfers (primarily Bitcoin and USDT) due to severe banking restrictions.

## Overview

| Field | Value |
|-------|-------|
| Status | Restricted |
| Risk Score | 95/100 (Very High Risk) |
| Enforcement Level | Moderate |
| Region | [[domain--middle-east|middle east]] |
| Currency | [[entity--ils|ILS]] |

## Tax

| Type | Rate |
|------|------|
| Capital Gains (Personal) | Unclear |
| Capital Gains (Corporate) | 15% CIT (general) |
| VAT on Crypto | No |
| Mining Tax | No specific guidance |
| Staking Tax | Unclear |
| Airdrop Tax | Unclear |

No crypto-specific tax guidance available.

## Licensing

| Field | Value |
|-------|-------|
| Required | No |
| Regulator | [[entity--pma|PMA]] |
| Framework | No crypto framework |
| Ease | very_complex |
| Cost | N/A |
| Timeline | N/A months |

## AML / KYC

| Field | Value |
|-------|-------|
| KYC Required | No |
| Travel Rule | No |
| FATF Member | No |
| FATF Status | non_compliant |

## DeFi

**Status:** unregulated

## Stablecoins

**Status:** unregulated

## NFTs

**Status:** unregulated

## Mining

| Field | Value |
|-------|-------|
| Legal | Yes |
| Electricity Cost | $0.152/kWh |
| Renewable Energy | 3% |
| Climate | arid |
| Infrastructure | poor |

Electricity costs are relatively high and renewable energy penetration is very low. Infrastructure for mining is poor due to limited data center capacity and unstable power supply.

## Geopolitics

| Field | Value |
|-------|-------|
| Stability | very_unstable |
| Sanctions | No |
| Corruption Index | 26/100 |
| Ease of Business | difficult |
| Internet Freedom | partly_free |
| Banking Access | very_restricted |

## Enforcement

No detailed enforcement information available

## CBDC Status: none

## FAQ

### Is cryptocurrency legal in Palestine?

Cryptocurrency is not legally recognised and operates in a legal grey area in Palestine. The Palestine Monetary Authority (PMA) issues warnings against crypto use citing fraud, volatility, and absence of legal oversight. No formal licensing or regulatory framework exists. Crypto is informally used by Palestinians for cross-border payments, remittances, and humanitarian aid transfers (primarily Bitcoin and USDT) due to severe banking restrictions.

### What is the FATF status of Palestine?

Palestine is classified by FATF as: non_compliant.

### What is the AML/KYC regime in Palestine?

KYC is not universally mandated.

---

*Data source: [Soken Crypto Legal Map](https://soken.dev/crypto-map/). Last reviewed: 2026-06-01.*

**Sources:**
- [https://www.pma.ps](https://www.pma.ps)