On August 12, 2018 Saudi Arabia’s Standing Committee for Awareness on Dealing in Unauthorized Securities Activities in the Foreign Exchange Market made cryptocurrency trading illegal. However, the consequences of not obeying this law in Saudi Arabia are currently unknown. Currently Saudi Arabia has not issued license for virtual currency businesses.
Here is the governmental committee's statement.
The committee assured that virtual currency including, for example but not limited to, the Bitcoins are illegal in the kingdom. The committee warns all citizens and residents about drifting after such illusion and get-rich schemes due to the high regulatory, security and market risks involved, not to mention signing of fictitious contracts and the transfer of funds to unknown recipients/entities/parties.
According to the statement, the market of digital currencies is risky because it is “out of government supervision.” The committee did mention that interested investors can invest in parties “under supervision” of the government which gives a little hope to Saudi investors.
The standing committee confirmed that government parties relevant to investment in the financial sector provide all needed information about authorized parties that interested investors can refer to as they are under supervision by the controlling authorities.
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