Despite the great strides crypto had made in Saudi Arabia, it was still tagged with that label “illegal”. Report reaching us today, states that a standing committee comprising of regulators from various government institutions in Saudi Arabia has asked its citizens to stay away from cryptocurrency trading due to the regulatory and security risks involved.
The committee made its advice stand crystal clear in a statement published on their website (Saudi Arabia Monetary Authorities).
THE COMMITTEE WARNS ALL CITIZENS AND RESIDENTS ABOUT DRIFTING AFTER SUCH ILLUSION AND GET-RICH SCHEME[S]DUE TO THE HIGH REGULATORY, SECURITY AND MARKET RISKS INVOLVED, NOT TO MENTION SIGNING OF FICTITIOUS CONTRACTS AND THE TRANSFER OF FUNDS TO UNKNOWN RECIPIENTS/ENTITIES/PARTIES.
The standing committee sprang out from a supreme decree in the country and is dominated by members from the Ministries of Commerce and Investment, Media, and Interior.
Deduced from the statement above, The country’s Capital Markets Authority (CMA)and Saudi Arabia Monetary Authorities(SAMA) have been obliged to attend to any reports of crypto investment within the country. The committee members claimed that crypto is attached with high risks which is not suitable for its traders and for the fact that it is completely out of the government’s supervision.
In the statement above, we were made to understand that no parties are licensed to carry out crypto trading in the kingdom of Saudi Arabia. However, the statement didn’t mention what the consequences would be for crypto traders, if there are any.
The recent developed acrimony against crypto is as a result of the current low pricing in the crypto market recently, if not, the Saudi Arabia Central Bank (SAMA) would not have said such publicly.
In the early weeks of Feb. this year, this same bank announced its partnership with Ripple on a payment infrastructure that relies on Ripple’s xCurrent. As of last year December, this same country started a joint Blockchain project with United Arab Emirates(UAE) which aims to issue a digital currency to be used by the two countries. However, the project was only announced to be at its initial phase, then.
Is it not surprising how the country would now totally turn against blockchain tech that is only in its early stage, after all the efforts they had put in this, to bring it to the stage where it is, now? Anyways, only time will tell if the committee members are right with this decision.