Cryptocurrency Trading is Still Considered Illegal in Saudi Arabia

3 min read

Saudi Arabian authorities have issued a notification to announce that the cryptocurrency transactions are still illegal throughout the country. The announcement comes as a response to the growing number of companies that have settled in the Arab state. 

Saudi Arabia has issued an order according to which it continues to consider the sale of digital assets across the country an illegal activity. To ensure that everything goes according to the plan, the government has created a committee, managed by the Capital Market Authority, whose role is to monitor the process of adopting the ban. Besides this, the committee also counts officials of the Ministry of Trade and Investment, the Ministry of Interior, the Ministry of Information and the Saudi Arabian Monetary Agency (SAMA).

The standing committee defames the platforms that claim they have authorization, stating:

“The claims of these websites that they are authorized by official authorities in the kingdom are incorrect and that no parties or individuals are licensed for such practices.”

The rumors circulating in the Arab state refer mainly to the risks involved in the virtual currency trading and the increase rate of the criminal cases involving cryptos. The committee has the role of notifying citizens of the abovementioned details. Note that cryptocurrency trading is not directly monitored by the government.

The ban not only refers to the crypto sector but also to forex trading on platforms that aren’t authorized by SAMA.

Saudi Arabia is eyeing blockchain technology

Back in February, Al Rajhi Bank, a Saudi Arabian Bank revealed that it has managed a successful experiment in collaboration with Ripple‘s technology. The trial consisted of realizing transactions between bank’s branches in Saudi Arabia and Jordan by integrating Ripple tech.

In the same period, the Central Bank of Saudi Arabia signed a partnership with Ripple to streamline the payment system of the financial institutions in the Arabian nation on the basis of xCurrent, one of Ripple’s features.

Author: Adriana Midrigan

Elite CurrenSea

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