The central bank of Lebanon issues bitcoin warning

The Bank of Lebanon, the country’s central bank, issued a warning about Bitcoin on December 19, 2013. This was the first such warning in the region. The bank outlined several risks associated with digital currencies:
 

• Transactions made through unregulated networks cannot be guaranteed and losses cannot be recovered.

• Unauthorized and incorrect transactions using digital currencies are irreversible.

• The highly speculative nature of digital currencies and the fact that they are not guaranteed by any central bank makes them very volatile.

• Digital currencies can be used for criminal activities, including money laundering and terrorism.

The bank also stated that the issuance and use of “e-money” is prohibited under a decree issued in 2000. The notice is issued for financial institutions and exchange institutions, so it prohibits the use of bitcoin by financial institutions in the country. As for private citizens, the situation is not as clear.