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Saudi Arabia Warns Citizens and Residents Against Trading Crypto

Saudi Arabia Warns Citizens and Residents Against Trading Crypto

A governmental commission on financial matters in Saudi Arabia has warned the public that trading digital currencies remains illegal in the kingdom.

The warning, issued by the Standing Committee for Awareness on Dealing in Unauthorized Securities Activities in the Foreign Exchange Markets, was published on August 12 by the Saudi Arabian Monetary Authority (SAMA).

According to the statement, digital currencies are “out of supervision of the government” and “illegal in the kingdom,” noting that “no parties or individuals are licensed” for trading or dealing with cryptocurrency.

Calling digital currencies an “illusion” and a “get-rich scheme,” the committee notes “high regulatory, security, and market risks” associated with virtual currency trading, and urges the public against “signing of fictitious contracts and the transfer of funds to unknown recipients/entities/parties.”

Apart from a vague mention of “negative consequences,” the statement does not go into detail about the penalties for those found trading or dealing in cryptocurrencies.

The standing committee issuing the warning was established by the supreme decree of the Saudi King and is supervised by the Capital Market Authority (CMA), which also manages the Ministry of Media, Ministry of Commerce and Investment, SAMA, and the Ministry of the Interior, among others.

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