Saudi Arabia warns against trade and investment in cryptocurrencies. The competent authority has the task of reporting on all activities in order to limit the crypto-market dealings.
No trade, No investments
A statement has been issued in Saudi Arabia to remind citizens that cryptocurrency trading is illegal. The statement was released a few days ago stating that cryptocurrencies like Bitcoin are illegal in the UK and that no companies, parties or individuals own a crypto-trading license. “The committee warns all citizens” against investing in cryptocurrencies or digital currencies for their high-risk consequences. One should not give the illusion of getting rich quick, there are risks in terms of regulation, security, and volatility.
The statement also warned citizens against investing in cryptocurrencies:
The Committee warns against trading in cryptocurrencies or digital currencies because of their negative consequences and high risks for traders, as they are outside government control.
In the official statement, however, the consequences for participation in crypto-trade between two parties were not listed.
Digital Currencies in the Middle East
Although cryptocurrency trading is officially illegal in Saudi Arabia, other digital currencies have gained importance in the Middle East. For example, in the middle of last month, Stellar received a Sharia certification, allowing applications of the native cryptocurrency lumen (XLM).
By leveraging XLM, Middle Eastern users have access to more efficient and cost-effective payment channels when they want to send money across regional boundaries. Although citizens and cryptocurrencies benefit from Sharia approval, Saudi Arabia does not seem to recognize the benefits and opportunities of the blockchain implementation yet.
The cryptocurrency Stellar Lumens (XLM) – as well as any other digital currency – cannot be used due to the prohibition and thus citizens cannot take the benefit from the positives of the digital revolution.