The General Secretariat of the Presidency of the Syrian Arab Republic has enacted decision number 1124 to implement a system for digital payments and transformation, as announced by the Central Bank of Syria. This decision establishes for the first time a regulatory framework for the licensing of electronic payment and digital currency companies operating in the country.
Once fully implemented, this decision mandates that any company wishing to provide payment services or electronic wallets in Syria will require an official license from the Central Bank, transitioning these activities from a previously undefined regulation. This impacts citizens relying on money transfers and cash payments in an environment with limited access to digital banking services. It also opens opportunities for local and regional fintech firms to officially enter the Syrian market for the first time in years.
The Central Bank of Syria's media and communication department stated to the Syrian Arab News Agency (SANA) that the system aims to develop a modern national payment ecosystem, expanding payment and transfer options for citizens and businesses, thereby facilitating and enhancing financial transactions, without abolishing cash transactions or mandating any specific payment method.
Regulatory Sandbox
According to the central bank, the decision regulates three categories within the payment ecosystem: payment service providers, electronic money service providers, and payment system operators, each requiring prior licensing. It also institutes a “regulatory sandbox” permitting the testing of innovative financial solutions in a controlled regulatory environment before broader implementation—an approach commonly used by regulators to minimize the risks associated with launching new financial products all at once in the market.
The central bank noted that the system imposes governance, cybersecurity, and user protection requirements, indicating a future pathway for Syrian financial infrastructure to integrate with regional and international payment systems. However, it stressed that this does not immediately allow for international transfers or direct connectivity. This distinction is crucial: the decision primarily organizes the domestic market and does not instantly open channels for international transfers according to the statement.
In May, the Central Bank of Syria issued a decision permitting licensed banking institutions and electronic payment companies within the country to interact with "Visa" and "Mastercard," a move then considered transformative in updating Syria's financial infrastructure.
Key Takeaways
Decision number 1124 was issued by the General Secretariat of the Presidency of the Syrian Arab Republic, adopting a system for electronic payment and transformation in Syria.
The system regulates three categories: payment service providers, electronic money service providers, and payment system operators, requiring licensing for all.
The decision includes a "regulatory sandbox" to test innovative financial solutions before extensive rollout.
The system does not abolish cash transactions nor mandates a specific payment method, according to the Central Bank of Syria.
Potential future integration with regional and international payment systems is a conditional goal, not an immediate step; following a previous decision in May that permitted interaction with "Visa" and "Mastercard."