Online Forex trading in the Palestinian Territory is legal with recent regulatory developments aimed at organizing the sector. The Palestine Capital Market Authority published regulations governing operations of financial securities companies with foreign stock markets in 2021, requiring licensing for companies wishing to engage in forex and foreign market trading activities. The PCMA has since licensed three companies to operate in the Palestinian market, with licensing intended to enhance transparency, protect investors, and reduce illegal practices (1).
The Palestinian Monetary Authority is responsible for developing, regulating, and implementing monetary and credit policies including policies on dealing in foreign currencies. The PMA maintains and manages foreign currency reserves while regulating exchange activities and money-changers through licensing requirements. The authority's objectives include ensuring soundness of banking operations, maintaining monetary stability, and encouraging economic growth in Palestine (2).
"Licensing forex companies enables the Authority to monitor their performance and ensure compliance with laws, thereby reducing risks faced by investors. Adopting artificial intelligence and data analysis techniques helps us detect manipulation or illegal activity early, which reinforces market integrity."
Prior to regulatory licensing, the PCMA abstained from licensing forex companies citing high risks including fraud and unaccounted losses, but this led to increased activity of unlicensed offices. The shift toward licensing reflects efforts to organize the local market and provide legal protections for investors, particularly young people who constitute approximately 80 percent of forex traders in Palestine. Current licensing standards require adequate capital controls, compliance with Palestinian laws, and centralized data storage systems (1).
Source:
https://raqeeb.ps/en/4280.html
https://www.pma.ps/Portals/0/Users/002/02/2/Legislation/Laws/Law_No_2_of_1997_on_Palestinian_Monetary_Authority.pdf
Last updated: 15-10-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.
