Officials from the Saudi Arabia government have warned the citizen of the country that Bitcoin trading is illegal. The news came into light during a digital currency promotion in the nation.
As per the statement published by the standing committee, the bitcoin trading or cryptocurrency, in general, is prohibited and any such claims impersonating as licensed trading are fake. The intention behind this decision is due to the “negative consequences and high risks for traders as they are out of government supervision.”
Furthermore, the statement explained that,
“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”
It is to be noted that the committee is headed by the Capital Market Authority and also includes representatives of the Ministry of Interior, the Ministry of Information, the Ministry of Trade and Investment, and the Saudi Arabian Monetary Agency (SAMA).
Although the committee warns about crypto trading, there is no indication of what might be probable outcomes for the individual or companies found trading.
Risks associated with Crypto-Trading
As mentioned above the ban came in the light of various risks associated with crypto-trading such as volatility of the crypto market, potential scams, anonymity, and the presence of unenforceable or fictitious contracts.
As of now, committed is working towards relevant parties and hence reduce or stop such illicit activities. This is not just for digital currency trading, as it also includes forex trading on sites not regulated by SAMA. For more information investors are expected to refer relevant government entity website and licensed entities details
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