Cryptocurrency Trading is Illegal in Saudi Arabia
State officials in Saudi Arabia have reminded citizens that trading in cryptocurrency is illegal in the country. This reminder comes following the recent emergence of virtual currency trading promotions in the Arab nation.
No Cryptocurrency Trading License in Saudi Arabia
The Kingdom of Saudi Arabia recently reinforced its stance on the illegality of cryptocurrency trading in the country. In addition, the government created a standing committee headed by the Capital Market Authority to oversee the enforcement of the prohibition. Other members of the committee include representatives of the Ministry of Interior, the Ministry of Information, the Ministry of Trade and Investment, and the Saudi Arabian Monetary Agency (SAMA).
The standing committee debunked the claims made by some websites, saying:
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 Risks Associated with Cryptocurrency Trading
The standing committee also warned Saudi Arabians about the risks involved with investing in digital currencies. The reasons given include volatility of the crypto market, potential scams, anonymity, and the presence of unenforceable or fictitious contracts. The committee also noted that cryptocurrency trading is outside the scope of government supervision and is also notorious for its use in illicit activities.