SAMA Considers Bitcoin As Illegal

SAMA is the Saudi Arabian Monetary Authority. On the 8th of August 2018, مؤسسة النقد العربي السعودي, the Saudi Arabian Monetary Authority began, “The standing committee warns against trading in the digital currencies or what is known as virtual currency for their negative consequences and high risks on traders as they are out of government supervision.”

SAMA operates ad the kingdom’s central bank. Its duties include the issuance of the Riyal, overseas banks, and foreign exchanges, and the traditional aspects of price and exchange rate stability, crediting itself with ensuring the growth and soundness of the domestic financial system.

“The committee assured that virtual currency including,” SAMA continued, “for example, but not limited to, the Bitcoins are illegal in the kingdom and no parties or individuals are licensed for such practices. The committee warns all citizens and residents about drifting after such illusion and get-rich scheme due to the high regulatory, security and market risks involved, not to mention the signing of fictitious contracts and the transfer of funds to unknown recipients/entities/parties.”

It is said that the kingdom is in a kind of modernizing period… Its ascended Crown Prince, First Deputy Prime Minister under King Salman, Mohammad bin Salman bin Abdulaziz Al Saud, who is barely 33 years of age and also one of the youngest monarchical office holders in the world, is known as a reformer of sorts. His stand on cryptocurrencies is not really clear.

Saudi Prince Al-Waleed bin Talal called bitcoin a “fraud” on American television (he would later run into his own legal problems involving fraud) in fall, last year. So far, that is the closest Royal Family pronouncements regarding crypto.