Regional tensions won’t sway Syria from innovating alongside its peers, with the government recently ratifying a proposal to create a new electronic payment system for its people. In Pakistan, a regulator overseeing the crypto ecosystem has called on exchanges to file a preliminary clearance to operate, warning that failure to do so will constitute an offense.
The Central Bank of Syria announced that the creation of a new electronic payment system was approved last week under a presidential decision—a move that will form part of the country’s efforts to innovate its financial infrastructure, Anadolu Agency reported.
The decision comes as diplomats from Syria and Israel held talks on de-escalating tensions in the region following an Israeli attack on a Syrian airbase near the Turkish border, which aggravated the already tense situation in the country, resulting from the 2011 civil unrest.
Amid these conflicts, Syria has been making strides in reviving its economy, which the International Monetary Fund (IMF) earlier this August said was showing its strongest signs of recovery as seen in improved consumer confidence, gradual return of refugees, easing sanctions, and renewed regional engagement.
Against this backdrop, Syria is also looking to modernize its financial infrastructure, with its latest e-payment system expected to play a role in accelerating the country’s economic recovery and become a stepping stone toward a cashless society.
However, the central bank was quick to point out that the development of this e-payment system does not necessarily mean that the use of physical cash is being gradually abolished, but rather provides Syrians with an efficient financial infrastructure that would allow them to transfer between banks and wallets, make digital payments, use different payment apps or services, and send and receive money more quickly.
This will become more apparent once authorities establish the regulatory and technical rules for payment services, which will cover three main categories—payment service providers, electronic money providers, and payment system operators.
There will also be a set of standards for governance, risk management, cybersecurity, and consumer protection to ensure a reliable and trusted payment system for the people, making it easier for fintech to thrive in the country, the central bank said.
The Syrian government is optimistic that this project will likewise encourage competition through its planned regulatory sandbox, which will allow fintech companies to test and develop new payment products in a controlled environment before their mass rollout, opening opportunities to create better and cheaper financial services for consumers in the future.
PVARA: No NOC, no business
Over in Pakistan, the clock is ticking for virtual asset service providers (VASPs) as they only have until September 5 to file for a no-objection certificate (NOC), a preliminary clearance issued by the Virtual Assets Regulatory Authority (PVARA) that enables exchanges to operate in the country while awaiting a full license.
Applying for an NOC is a mandate for VASPs that have been providing crypto-related services on or before March 5. PVARA warned exchanges that failure to submit an NOC application would result in their operations being suspended.
The call was made after PVARA announced that its licensing portal had begun accepting NOC applications on August 22, less than six months following the enactment of Pakistan’s Virtual Asset Act, although the regulator has been issuing NOCs to select firms since late last year. Among those granted preliminary approvals were Binance and HTX.
“For years, this market existed without a clear regulatory pathway. Today, that changes. We now have the rules, the regulator and the licensing framework to bring virtual assets into the formal economy, protect consumers and build the foundation for the next generation of financial infrastructure. Today we built the rules. Now we build the opportunity,” PVARA Chairman Bilal Bin Saqib said on X.
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