Saudi Arabia's monetary authority declares Bitcoin illegal

Saudi Arabia's monetary authority declares Bitcoin illegal

The Kingdom of Saudi Arabia's monetary authority issued an official statement this week stating that cryptocurrencies like Bitcoin are illegal. The reasons for this decision are "big risks" and "negative consequences" that can arise from cryptocurrencies.

Monetary authority declares cryptocurrencies illegal

On August 8, 2018, the Saudi Arabian Monetary Authority issued an opinion that began as follows: "The Standing Committee warns against trading in digital currencies, also known as virtual currencies, due to the negative consequences and high risks for traders, because this happens without state control. "

The monetary authority also acts as central bank of the country and is therefore responsible for the control of the Saudi Riyal (the state currency). It also controls banks and foreign exchanges and ensures the growth of its own financial system.

"The Committee notes that virtual currencies, including but not limited to, for example, bitcoins in the Kingdom, are illegal and that no actors or individuals are authorized to do so," the Authority continued. "The committee warns citizens and residents against deviations, illusions and planning of fast wealth due to the high regulatory, security and market risks involved in not forgetting the signing of fictitious contracts and the transfer of funds to unknown recipients / entities / actors . "