Cryptocurrency trading is officially illegal in Saudi Arabia after a government committee have issued a statement saying “the unautharized virtual currencies are illegal inside the kingdom of Saudi Arabia.”
The committee comprised of Saudi Arabian regulators issued a statement warning that cryptocurrency trading is officially illegal. The statement was issued 12th August, 2018,in which the committee warned crypto trading activities due to “negative consequences and high risks on traders as they are out of government supervision.”
“The committee assured that virtual currency including, for example but not limited to, the Bitcoins are illegal in the kingdom and no parties or individuals are licensed for such practices.”
The ruling does follow comments made by Saudi Prince Al-Waleed bin Talal in which he states bitcoin is ” just going to implode one day.”
The committee known as ‘the Standing Committee for Awareness on Dealing in Unauthorized Securities Activities in the Foreign Exchange Market’ “was formed by the supreme decree headed by Capital Market Authority (CMA), Ministry of Ministry of Interior membership, Ministry of Media, Ministry of Commerce and Investment and Saudi Arabian Monetary Authority (SAMA). As required by the supreme decree, the standing committee works with relevant parties in order to reduce marketing for investment and trading in Forex and virtual currencies by reporting on SAMA or CMA official websites.”
No official punishment has been determined although citizens of the Saudi Kingdom are warned “about drifting after such illusion and get-rich scheme due to the high regulatory, security and market risks involved”.
It is apparent that the unregulated nature of cryptocurrencies has led to this decision. The committee clearly feels that banning crypto trading is a better solution than actual regulation on the digital currencies. Let us know you thoughts on the matter via social media.
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