Palestine, State of cryptocurrency tax guide

What this guide covers

This guide documents the legal status of cryptocurrency under Palestinian law for 2025, based on a directly-read academic legal study, since no tax treatment was located. The PMA's own site wasn't directly fetched. This is educational information, not individualized tax or legal advice.

Tax treatment of cryptocurrency

Palestinian law treats virtual currencies as temporarily prohibited pending central-bank regulation, and no tax framework exists for an activity that's itself banned. A 2025 An-Najah University legal study concludes that the Palestinian legal system remains in a stage of 'temporary prohibition' of virtual currencies, due to the absence of a specific legislative framework governing them. The Palestinian legislator's decision to prohibit the circulation and use of virtual currencies is reported as lasting until the Palestine Monetary Authority (PMA) regulates these currencies, aimed at mitigating the legal and economic risks associated with them. Decree-Law No. (39) of 2022 on Anti-Money Laundering and Counter-Terrorism Financing provides a legal basis for subjecting crimes committed through virtual currencies to its provisions — an enforcement mechanism distinct from a comprehensive crypto framework. A separate, Arabic-language source notes that despite the PMA's direction to ban dealing with cryptocurrencies and various fatwas declaring them religiously forbidden, crypto use has become an inevitable practical reality. The PMA's own monetary powers are structurally limited: under the 1994 Paris Protocol, the PMA wasn't given the power to issue its own currency, set interest rates, or manage the money supply independently — a significant structural constraint on any Palestinian monetary authority's regulatory capacity generally. This research pass found no information on crypto taxation in Palestine, consistent with its reported prohibited legal status.

Common taxable events

• This guide doesn't identify any taxable crypto event under Palestinian law, since no individual crypto tax framework has been published and the underlying activity is itself reported as temporarily prohibited pending PMA regulation.

Potentially non-taxable events

• Not applicable in the ordinary sense this knowledge base uses the category — the dominant legal fact is prohibition pending future regulation, not an affirmative tax exemption for a legal activity.

Tax rates and thresholds

Not applicable — no individual crypto tax rate exists, consistent with the activity's reported temporarily prohibited status pending PMA regulation.

Cost basis and calculation

Not applicable.

Reporting and compliance

• This guide doesn't identify a crypto-specific individual tax reporting obligation under Palestinian law.
• Crimes committed through virtual currencies fall within the scope of Decree-Law No. 39 of 2022's AML/CFT provisions — a criminal-law matter distinct from any tax question.

Residency and cross-border issues

Not resolved in this research pass.

Example

This guide omits a worked tax example, consistent with the directive's own instruction to use a qualitative explanation rather than a fabricated calculation where the legal position doesn't support one. There is no tax framework to illustrate, given the reported temporary prohibition.

Official resources

• Palestine Monetary Authority (PMA): https://www.pma.ps/

Limitations and review information

Tax year covered: 2025. Last verified: October 11, 2026. Known gap: the PMA's own site wasn't directly fetched, though a 2025 academic legal study directly confirms the 'temporary prohibition' characterization with reasonable specificity. If this prohibition is lifted upon future PMA regulation, this guide would need a substantial rewrite, not a figure update. This is educational information only, not individualized tax or legal advice.