Saudi Arabia Regulators Warn Against Trading Cryptocurrencies
A government panel of the Kingdom of Saudi Arabia has cautioned general society that trading digital currency is unlawful in the nation, as indicated by an August 12 declaration by the Saudi Arabian Monetary Authority (SAMA). The notice was issued by the Standing Committee for Awareness on Dealing in Unauthorized Securities Activities in the Foreign Exchange Markets.
The standing advisory group was set up by supreme decree headed by Capital Market Authority (CMA) and contains such services as the Ministry of Media, Ministry of Commerce and Investment, SAMA, and the Ministry of Interior.
As indicated by the announcement, digital currencies are not perceived by the government and no elements are authorized to get involved with them. In the notice, the council notes high danger and negative results related with virtual currency trading, and encourages general society not to succumb to the alleged “get-rich schemes” as they suggest “high regulatory, security, and market risks.” The announcement does not call out the punishments for those associating with trading or dealing with cryptocurrency.
In spite of the fact that Saudi Arabia does not perceive cryptocurrencies, the nation has grasped the advantages of distributed ledger technology in different fields. A month ago, the region of Riyadh went into an organization with IBM to together build up a procedure to streamline government and transactions utilizing blockchain technology. The move was made with a goal to enhance the nature of municipal services for clients and coordinate leading advancements into services as a major aspect of the Saudi Vision 2030 program.
The Saudi Vision program was initially presented in 2016 by the Crown Prince Mohammad bin Salman and is committed to the financial advancement and enhancement of the nation’s economy. And also to patronizing innovative technologies like blockchain, the program plans to grow such divisions as infrastructure, medicinal services, tourism, education, and also military spending and manufacturing.
In February, SAMA and Ripple reported a consent to offer help for Ripple’s cross-border payment technology to banks in the Kingdom of Saudi Arabia. The two groups made an experimental run program to help Saudi banks in utilizing xCurrent, Ripple’s enterprise software solution that empowers banks to settle international payments with end-to-end tracking instantly.
