Saudi Standing Committee Says Crypto Trading Illegal in Kingdom

Nellie Chapman
August 17, 2018

The blockchain is no stranger to the Middle-East: Iran are set to introduce their own cryptocurrency, Dubai host major blockchain conferences, and Saudi Arabia have struck deals with Ripple and ConsenSys, which is why the news that the Saudi government has deemed crypto trading as illegal was a bolt from the blue.

Bitcoin is not the only cryptocurrency to take a hit in Saudi Arabia. This was traced to an issue with its banking partner in the country. This was followed by the Saudi national telecommunications company striking up a deal with a theory and based startup consensus created to reboot and improve the country's telecommunications system.

The standing committee warns against trading in the digital currencies or what is known as virtual currency for their negative consequences and high risks on traders as they are out of government supervision.

The standing committee also warned Saudi Arabians about the risks involved with investing in digital currencies.

The standing committee began life as a watchdog, investigating "unauthorized securities activities in the foreign exchange market'". The statement talks about cryptocurrency trading in general so other cryptocurrencies in the region are in hot water as well.

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After recent drops in the price of bitcoin and other cryptocurrencies, the government's central bank felt the need to remind citizens of the risks of trading, both financial and legal. This thing is not regulated.

The supreme decree has the committee looking into any investments in forex and cryptocurrency and reporting them to the authorities.

The post goes on to state that "virtual currencies... are illegal in the kingdom", before offering a reminder that there are no groups, companies, or individuals exempt from such a ban by way of licensing.

Saudi Arabia recently reiterated that cryptocurrency trading is still considered an illegal act the country.

The committee behind yesterday's statement comprises of members of the nation's Capital Market Authority (CMA), Ministry of Interior, Ministry of Media, Ministry of Commerce and Investment, and the Saudi Arabian Monetary Authority (SAMA).

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