Someone who is trying to understand cryptocurrency for the first time understand cryptocurrency as an intangible currency that is not supported by any form of tangible assets. It simply consists of a series of numbers on the computer, managed by no centralized entity, where transfers are being carried out through the internet by relying on cryptography science.

In the Journal of Critical Reviews by Omar Farouk Al Mashhour; Ahmad Shamsul Abd Aziz; Nor Azlina Mohd Noor about the legal framework governing cryptocurrencies under the Syrian Legislation:  In Syria, the laws and regulations do not have a precise attitude towards cryptocurrency. The political and economic conditions in Syria make it very hard to give cryptocurrency and its internationally recognized importance as a means of exchange a closer look.  The lack of regulatory clarity has left the door wide open for several illegal activities, which might threaten the entire world politically, financially, and socially.

The Syrian Currency Act of 2002, section (12) stated that the Syrian pound is the only recognized currency

under the Law as a legal tender currency.  Section (14) noted that the authority to issue the Syrian

pounds is given only to The Central Bank of Syria. Thus, cryptocurrency is not classified or recognized as a

currency.

Section (1) of the Act on Foreign Currency Entry and Exit and Acquisition of Syrian/Foreign Currency and Precious Metals No. 6 of 2000 defined “foreign currencies” as all currencies other than those that are issued in Syria. However, currencies consist of all money printed in the shape of notes or minted into

coins and issued, monitored, and supervised by the country’s central bank and given a legal tender status. Therefore, foreign currencies in Syria do not include cryptocurrencies.

Cryptocurrency cannot be classified as a security because it did not fall under the definition of securities per the Securities Act of 2005 in Syria. Cryptocurrency is not yet recognized, allowed, or licensed under any Syrian law.  Hence, cryptocurrency is not legally considered a commodity by the Domestic trade and consumer protection Act of 2015.

Under section 1(I), Presidential Decree No. 54 of 2013 and its amendment No. 3 of 2020 has banned the use of any currency or precious metals as means of payment, commercial transaction, or even repayment of debt other than the Syrian pound. Thus, there is an explicit prohibition of dealing with any other currency except Syrian pounds.

Based on a number of different legislations issued over long periods to regulate the operation of finance departments, whether for taxes, anti-money laundering, electronic transaction, and electronic signature law, there is no active statement about the legal status of cryptocurrencies.

Also, since the uprisings began in March 2011, the U.S. government has intensely pursued calibrated sanctions to deprive the regime of the resources it needs to continue violence against civilians and to pressure the Syrian regime to allow for a democratic transition as the Syrian people demand.

Thus, Crypto-related activities are not allowed or listed under Syrian laws, and it is not considered legal or illegal by any law or authority. Sanctions might only encourage Syrian Law.