Despite the proactive and eventually positive approach of Saudi Arabia towards blockchain technology, the officials are still holding back cryptocurrency trading to come into law.
On 12 August, the Saudi Arabian regulator committee issued an official statement warning that cryptocurrency trading is illegal. The Standing Committee in a statement clearly states that “THE UNAUTHORIZED VIRTUAL CURRENCIES ARE ILLEGAL INSIDE THE KINGDOM OF SAUDI ARABIA”. They also mentioned that:
The committee poised that virtual currency, for instance, but not limited to, Bitcoins are illegal in the kingdom and no individuals or parties are licensed for such practices.
Cryptocurrency including Bitcoin are Illegal in Saudi Arabia
This formal statement was issued by a standing committee, which was led by the Saudi Arabian Capital Market Authority (CMA). Some more heads include the Ministry of Media, Ministry of Interior membership, Ministry of Commerce and Investment. There was more representative member namely the Ministry of Information, Ministry of Trade and Investment, and the Saudi Arabian Monetary Authority (SAMA). They were in charge to reaffirm the trading illegality of Bitcoin and various another cryptocurrency.
This warning declaration was amid several online websites and social media accounts assisting cryptocurrency. The committee also outlines the risks incorporated with cryptocurrency trading and reiterates their use for the illicit activity. They are not only warning about the market volatility, but also about the potential scams such as money transfer to the unknown recipients, the existence of fictitious or unenforceable contracts. Although, that could not be the exact consequences; however, the reports says to halt the cryptocurrency trading in Saudi Arabia.
Currently, the standing committee is working with specific bodies to minimize the marketing pursuit. This is for cryptocurrency trading and forex trading on sites which are not under the supervision of SAMA. To clarify the purpose, investors can refer the entity website of government for the exact details about the licensed entities.