Best crypto insights delivered straight to your inbox.
Saudi Arabia’s Watchdogs Claim Bitcoin Trading in the Kingdom is Illegal
Saudi Arabia’s Standing Committee for Awareness on Dealing in Unauthorized Securities Activities in the Foreign Exchange Market has issued a warning about the illegality of trading cryptocurrencies like bitcoin in the kingdom. The committee was created by five of the country’s watchdogs, including the de facto central bank Saudi Arabian Monetary Authority (SAMA) and the Capital Market Authority (CMA).
In a statement issued on August 12, 2018, the committee warned that the trading of cryptos could cause negative repercussions and pose high risks to traders because they are not supervised by the government.
Part of the statement reads:
“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.”
Why the Standing Committee Issued the Warning
The committee has issued the warning after Saudi Prince Al-Waleed bin Talal issued a remark in late 2017 stating that bitcoin is just going to collapse one day.
The prince went on to say that the leading cryptocurrency is comparable to the U.S. energy firm Enron. The company collapsed in the early 2000s following revelations of a rampant accounting fraud.
If you're reading this, you’re already ahead. Stay there with our newsletter.
Rommel Dumlao
Writer, editor, content provider Rommel is a freelance writer and editor for ten years. He has worked in numerous formats, including magazine articles, blogs, social media, and copywriting.
CRASH COURSE
- Which cryptocurrencies can make you money
- How to boost your security with a wallet (and which ones are actually worth using)
- Little-known investment strategies that the pros use
- How to get started investing in crypto (which exchanges to use, the best crypto to buy etc)