Crypto is unsafe! warns Syria's central bank

• The absence of a legal framework and clear regulatory oversight for digital currencies, combined with their potential use in illicit activities, exposes users to legal prosecution and makes it difficult to recover funds in case of loss.
• Fraud is widespread due to transactions being conducted through unreliable online platforms or through hacking attacks targeting digital wallets.
• Extreme price volatility—especially in unstable market conditions—can lead to significant losses in a short period of time.

For these three reasons, the Central Bank of Syria issued a “Public Awareness and Warning” statement on August 18, 2025, cautioning Syrians against dealing in digital currencies.

The statement noted that the bank had observed informal trading of cryptocurrencies among Syrians and urged citizens not to fall for deceptive promises of quick profits. It rejected any form of engagement with digital currencies, warning that any such dealings are solely the responsibility of the individuals involved.

Binance, the American cryptocurrency exchange, became the first company to offer its services inside Syria on June 12, 2025, following President Trump’s announcement of his intention to lift sanctions. Syrian media at the time celebrated what seemed to be the beginning of the end of the country’s financial isolation.

Globally, countries fall into three categories regarding digital currencies:

• Some adopt them as legal tender, such as El Salvador and South Africa.

• Others allow their use in commercial and service transactions, like the UAE, Switzerland, and Japan.

• A third group bans or restricts their use entirely, including China, Saudi Arabia, and Algeria. Tunisia imposes partial restrictions on their use and trading.

⚖️ On the flip side, digital currencies offer several advantages:

💸 Ease of Transfers

• Funds can be sent across borders within minutes, without banks or intermediaries.

• Transaction fees are often much lower than traditional systems.

🔐 Security and Privacy

• Based on encryption and blockchain technology, making them highly resistant to hacking.

• Some transactions don’t require identity disclosure, enhancing privacy.

🌐 Decentralization and Financial Independence

• Not controlled by governments or central banks.

• Empowers individuals to manage their money without institutional interference.

📈 Investment Opportunities

• Price volatility creates potential for high returns (though it carries risk).

• Some currencies like Bitcoin and Ethereum have seen massive growth.

🕒 Speed of Transactions

• Transactions are completed in seconds or minutes, compared to days in traditional banking.

🌍 Global Accessibility

• Anyone with internet access can own a digital wallet and participate in the digital economy.

• Especially useful in countries with weak banking infrastructure or hyperinflation.

Syria news report