Bitcoin Trading is Illegal in Saudi Arabia

The Saudi Arabian government released a statement a few days ago to warn citizens to back off from investing in cryptocurrencies.

The government created an official document that revealed the negative consequences of trading in digital currencies.

The document warned all citizens to stay off from any get-rich-quick investment scheme. According to the report, “Bitcoins trading is illegal in the Saudi Arabia kingdom.” The document did not state any consequences for anybody that goes contrary to the statement.

The committee for the Ministry of Media, Commerce, and Investment gave various reasons for citizens not to trust any cryptocurrency scheme. The reasons include potential scams, anonymity, and the presence of fictitious contracts.

As required by the court, the standing committee works with relevant parties to reduce the trading and investment of any virtual currency.” – Saudi Arabian Monetary Agency (SAMA).

The committee further added that all cryptocurrency has been used outside the scope of government supervision to promote drugs and sponsor killings.

The SAMA urges all investors in doubt to refer to the government entity website.

This warning follows the cryptocurrency criticism by Saudi Prince Al-Waleed during an appearance on CNBC last year. Saudi Prince Al-Waleed made a great comparison between Bitcoins and the Eron scandal in 2001. He also compared cryptocurrency to the Lehman Brother’s bankruptcy in 2008.

Al-Waleed went on to say:

“Cryptocurrency does not make sense. The thing has no value. It’s not under control or supervision by any central bank.  I don’t believe in this thing at all. It is a big-time scam.”

AL-Waheed was speaking on in support of Jamie Dimon statement in September 2017, where he declared bitcoin “a fraud” and threatened to fire any worker trading cryptocurrency. According to a source from CNBC, Dimon further added that Cryptocurrencies would blow up.

A news source confirmed that all Arab nations are against the trading of cryptocurrencies following the recent ban of bitcoins in Egypt. Grand Mufti, Sheik said, “Bitcoins is forbidden in Islam as it causes harm to people.” An adviser to Grand Mufti told Egypt that Bitcoins is used to fund terrorist.

Despite the news, the Government of Saudi Arabia still depends on the technology to strengthen its economy. The decision was based on the Saudi Vision 2030 program meant to promote the development of the nation.