Saudi Arabia Declares Cryptocurrency Trading Illegal
State Officials in Saudi Arabia have warned and reminded the citizens that cryptocurrency trading is illegal in the country. This reminder comes in light of the emergence of cryptocurrency promotions in Saudi Arabia.
Furthermore, the government created a standing committee headed by the Capital Market Authority to oversee the enforcement of this prohibition. Members of this committee include representatives of the Ministry of Interior, the Ministry of Information, the Ministry of Trade and Investment and the Saudi Arabian Monetary Agency.
The committee issued a statement to debunk some of the claims made by websites. It said,
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 committee further warned Saudi Arabians about the risks associated with using cryptocurrencies such as the volatility of the market, potential scams, anonymity, and the presence of unenforceable and fictitious contracts. The committee also added that cryptocurrency trading is outside the scope of government supervision and is infamous for its use in illegal activities.
Currently, the committee is working with other relevant institutions reduce these marketing activities. This not only includes virtual currency trading but also, forex trading on sites not controlled by the government. For clear rules and instructions, the individuals should refer to the government’s website for details.
What is the state of Blockchain Technology Adoption in the country?
In February 2018, Al Rajhi Bank, a Saudi Arabian bank announced that it had run a successful trial of Ripple technology. This trial used Ripple technology for transferring money from Saudi Arabia and Jordan between different branches of the bank. Furthermore, in February as well, the Central Bank of Saudi Arabia signed an agreement with Ripple to help banks in the country improve their payment infrastructure using xCurrent. Saudi Arabia’s central bank is the first one in the world to do so.
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