Saudi Arabia reiterates that crypto trading is illegal. Additionally, the government created a standing committee headed by the Capital Market Authority to monitor the enforcement of the ban.
13 August, AtoZ Markets – Government officials in Saudi Arabia have reiterated the fact that cryptocurrency trading in the country is illegal. The reminder emerges after a number of digital currency trading promotions in the country.
Saudi Arabia Reiterates That Crypto Trading is Illegal
The Kingdom of Saudi Arabia has recently made sure that citizens are aware of its stance regarding the cryptocurrency trading in the country. Additionally, the government created a standing committee headed by the Capital Market Authority to monitor the enforcement of the ban. Some other members of the committee include representatives of the Ministry of Interior, the Ministry of Information, the Ministry of Trade and Investment, and the Saudi Arabian Monetary Agency (SAMA).
The standing committee has stated:
“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.”
The standing committee has also warned Saudi Arabia residents regarding the risks involved in trading virtual currencies. The reasons provided included volatility of the crypto market, anonymity, potential scams and the existence of fake contracts. The committee has also noted that cryptocurrency trading is outside of the scope of government supervision.
Saudi Arabia’s central bank’s deal with Ripple
Presently, the committee is working with relevant bodies to cut down such marketing activities. This is not just concerned with the digital currency trading, but also involved Forex trading on websites that are not regulated by SAMA. In order to clarify the situation, investors would need to double check the information of the entity with the government.
Earlier this February, we reported that Ripple has inked a deal with Saudi Arabia’s central bank to pilot test the program that will make country’s banks try the Ripple’s technology.
The Ripple Saudi Arabian Monetary Authority partnership has marked the second deal of the tech company with a big bank. The first such deal has been signed with the Bank of England, as it has been collaborating with Ripple since last year.
The news about Ripple Saudi Arabian Monetary Authority partnership did not come as a surprise given the interest in the xCurrent by Ripple. Many other major financial institutions have been expressing the heightened interest in this tech company.
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