Saudi Arabia state officials have once again issued reminders that trading in cryptocurrency is illegal in the country. The statement was made after several recent digital currency trading promotions started appearing in the Arab state.
Cryptocurrency Trading License Banned
Saudi Arabia recently reiterated that cryptocurrency trading is still considered an illegal act the country. Furthermore, the government established a standing committee led by the Capital Market Authority to supervise the implementation of the ban. The committee also includes representatives of the Ministry of Trade and Investment, the Ministry of Interior, the Ministry of Information, and the Saudi Arabian Monetary Agency (SAMA).
The standing committee discredited the websites that claimed they had authorization, stating:
“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 committee also cautioned its citizens regarding the risks that come with cryptocurrency investments. The authorities also pointed out that cryptocurrency trading is not supervised by the government and it also has a reputation for being used in many illegal activities.
The committee is currently working with appropriate organizations to counteract such marketing activities. This does not concern only virtual currency trading, as it also applies to forex trading on sites unregulated by the SAMA.
Saudi Arabia and Blockchain Technology
Al Rajhi Bank, a Saudi Arabian bank, announced in February of this year that it conducted a successful trial with Ripple’s technology. This trial transferred funds from Saudi Arabia and Jordan between bank branches by using Ripple technology. In that same month, the Central Bank of Saudi Arabia contracted Ripple to improve payments infrastructure of the banks in the Arabian nation by using xCurrent.
SAMA is the first ever central bank to implement this technology. According to a report made on July 11, 2018, the municipality of Riyadh struck a partnership with IBM. This partnership was made with the purpose of performing a series of blockchain technologies in various administrative and economic areas.