Saudi Arabia declares Bitcoin Trading ‘Illegal’

In a recent report, it has been announced that trading of cryptocurrencies is ‘illegal’ in Saudi Arabia. The decision was taken by a standing committee that included several government ministries and the Central Bank of Saudi Arabia.

Public statement in Saudi Arabia

The Sovereign Arab States’ deface central bank the Saudi Arabian Monetary Authority (SAMA) published a statement on Sunday. According to it, the government declared that it was against cryptocurrency trading. It is because of “their negative consequences and high risk on traders” as they are not under any government’s supervision. The standing committee was made by a supreme decree. It was made to particularly look into the matters of ‘unauthorized securities activities in the foreign exchange market’.

Saudi Arabia’s Capital Market Authority (CMA), the Interior, Media, Commerce & Investment ministries as well as the SAMA are included in this very committee. It has been allotted the task of informing the appropriate authorities in the form of reports regarding trading or investments in forex and cryptocurrency trading. They are also told to reduce the marketing activities so that it keeps them off from the investors. The committee made a statement that said,

“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.”

No penalties decided

However, the statement did not include any punishment or penalties for cryptocurrency trading. It served the purpose of informing the citizens as to what seems illegal in the eyes of the nation’s government. To include regional banks on RippleNet which is an enterprise blockchain network for instant payments, Saudi Arabia’s central bank is using Ripple’s blockchain software xCurrent.

 

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