Bitcoin Trading Is Illegal in Saudi Arabia, Warn Watchdogs

August 13, 2018
102 Views

A governmental committee comprised of Saudi Arabian regulators has issued a statement clarifying that cryptocurrency trading is illegal in the kingdom.

According to a statement issued Sunday, the standing committee warned against trading in cryptocurrencies due to “negative consequences and high risks on traders as they are out of government supervision.”

It went on to clarify:

“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.”

The statement does not indicate what the consequences might be for parties found to be trading in cryptocurrencies.

Brought into being by a supreme decree, the Standing Committee for Awareness on Dealing in Unauthorized Securities Activities in the Foreign Exchange Market was formed by five of the Middle Eastern country’s watchdogs, including the Capital Market Authority (CMA) and the Saudi Arabian Monetary Authority (SAMA), the country’s de facto central bank.

As well as its mandate over unauthorized securities, the committee also has the remit of notifying the relevant agencies of any virtual currency activities in order to reduce their exposure to the public.

The warning follows a critical remark by Saudi Prince Al-Waleed bin Talal in December 2017, in which he said bitcoin is ” just going to implode one day.”

The prince further compared the world’s largest cryptocurrency by market valuation to Enron, the U.S. energy company that collapsed in the early 2000s after revelations of massive accounting fraud.

Saudi Arabian flag image via Shutterstock

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

https://www.coindesk.com/bitcoin-trading-is-illegal-in-saudi-arabia-warn-watchdogs/

You may be interested

Russian ICO That Impersonated Bank Hit With Cease-and-Desist
Crime
Crime

Russian ICO That Impersonated Bank Hit With Cease-and-Desist

btcethereumadmin - November 20, 2018

North Dakota’s securities watchdog has issued a cease-and-desist order against a Russia-based initial coin offering (ICO) that appeared to impersonate…

Bitcoin Price Drops to $4,200 Despite Record Low On RSI
Bitcoin
Bitcoin

Bitcoin Price Drops to $4,200 Despite Record Low On RSI

btcethereumadmin - November 20, 2018

Bitcoin’s price continues to slide despite the oversold conditions signaled on the technical charts for the last six days. The…

Singapore’s Stock Exchange Clarifies Rules for Listed Firms Issuing ICOs
Crypto News
Crypto News

Singapore’s Stock Exchange Clarifies Rules for Listed Firms Issuing ICOs

btcethereumadmin - November 20, 2018

Singapore Exchange (SGX) has clarified the rules for publicly listed companies planning to conduct initial coin offerings (ICOs). In a…

Leave a Comment

Your email address will not be published.