A standing committee under the central bank of Saudi Arabia banned the use of virtual currency in Saudi Arabia. The standing committee known as Saudi Arabia Monetary Authority (SAMA) made this known through a press release on their official website. Despite the country’s involvement with the Bitcoin, and the technology behind cryptocurrencies, the blockchain, there is still a cast of doubts on it.
Cryptocurrency Is Illegal in Saudi Arabia
The Saudi Arabia Monetary Authority (SAMA), a committee under the aegis of the Central Bank of Saudi Arabia that oversee the Forex, pronounced cryptocurrencies illegal on the 12th of August.
The standing committee as stated in the release is formed by a royal decree and is controlled by Capital Market Authority (CMA), Ministry of Ministry of Interior Membership, Ministry of Media, Ministry of Commerce and Investment and Saudi Arabian Monetary Authority (SAMA).
According to the declaration of the illegality status of cryptocurrencies in Saudi Arabia, it was stated that the virtual currencies are not permitted in the country because of the inherent negativity. The fact that the cryptocurrency market is volatile and uncensored makes it dangerous to use or transact with.
It was stated that,
“The committee assured that virtual currency including, for example, but not limited to, the Bitcoins are illegal in the kingdom, and no parties or individuals are licensed for such practices.”
The committee further warned the citizens and residents against investing in what is described as an “illusion and get-rich scheme,” so also is not involving themselves in any form of contract or business that has the tag of cryptocurrency.
The Volatility Fear
The committee cites the fear of the volatility with cryptocurrencies as reasons for its illegality in Saudi Arabia. Same reasons are responsible for the involvement of the government of most countries in cryptocurrency.
However, the stability that is needed in cryptocurrency can only be gained through the acceptance of various government of nations, just as the market looks forward to Bitcoin ETF.
Despite the illegality status of cryptocurrency in Saudi Arabia, the government still cherishes and has adopted the underlying technology.