August 13, 2018 324By Nathan Bentley
“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.”Furthermore, according to Ethereum World News:
“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.”Moreover:
“Currently, the committee is working with relevant bodies to reduce such marketing activities. This is not just for digital currency trading, as it also includes forex trading on sites not regulated by SAMA. For clarity purposes, investors should refer to the relevant government entity website for details of licensed entities.”See more for yourself, here. We must clarify that whilst cryptocurrencies are illegal in Saudi Arabia, authorities there are still paying close attention to blockchain technologies and indeed, Saudi Arabia are fostering a positive approach towards the blockchain, with many banks and financial service providers working alongside well known cryptocurrency brands. The future for crypto in Saudi Arabia is uncertain, we do expect that eventually trading will be made legal, once appropriate regulations fall into place. For now though, remember that trading is illegal. We expect the authorities to take action on this and that this warning is simply not just scaremongering, it’s something they are serious about.