When it comes to cryptocurrency, Saudi Arabia doesn’t play games. If you’re a bank, investment firm, or any licensed financial institution in the country, the message is clear: don’t touch crypto. It’s not just discouraged-it’s forbidden. And this isn’t some vague advisory. It’s a hard line drawn by the Saudi Central Bank (SAMA) and the Ministry of Finance, backed by official statements that have stood for years.
What the Authorities Actually Said
In December 2018, a joint committee led by SAMA made a definitive call: virtual currencies like Bitcoin and Ethereum are “illegal and unlicensed” in Saudi Arabia. That wasn’t a press release. It was a regulatory order. Financial institutions were told to cut all ties with crypto exchanges, wallets, and trading platforms. No deposits. No withdrawals. No custody services. No advisory. Nothing. The Ministry of Finance added fuel to the fire in 2019, warning the public that investing in cryptocurrencies is risky because they’re not recognized, regulated, or protected by any government body. If something goes wrong-your wallet gets hacked, a platform vanishes, or you’re scammed-there’s no recourse. No regulator to call. No legal protection. No refund. SAMA also made it clear that any company trying to use Saudi Arabia’s name, flag, or national symbols to promote crypto services will face legal action. That means no local branding. No fake “Saudi-approved” exchanges. No misleading ads. Violate this, and you’re looking at fines or worse.Why the Strict Stance?
The reasons aren’t just about money. They’re about religion, stability, and control. Saudi Arabia follows Sharia law, and many religious scholars have raised concerns that cryptocurrencies lack intrinsic value, are speculative, and enable unregulated transactions-traits that conflict with Islamic finance principles. While there are claims online that a Saudi cleric issued a fatwa approving Bitcoin, no credible source or official religious body has ever confirmed this. The official position remains aligned with caution. Then there’s the risk of money laundering. Saudi Arabia is under pressure from global watchdogs like the Financial Action Task Force (FATF) to tighten controls. Cryptocurrencies, with their pseudonymous nature, are seen as a loophole for illicit flows. Since there’s no licensing system for crypto businesses in the Kingdom, regulators can’t enforce KYC or AML checks. So the easiest solution? Block financial institutions entirely.But Wait-Isn’t Saudi Investing in Blockchain?
Here’s where things get confusing. While regular crypto trading is banned for banks and investors, Saudi Arabia is quietly building one of the most advanced blockchain infrastructures in the Middle East. Project Aber-a joint CBDC initiative with the United Arab Emirates-started in 2019 and has already tested digital currency transfers between central banks. That’s not Bitcoin. That’s not Ethereum. That’s a government-controlled digital riyal, built on permissioned blockchain tech, with full oversight. Major global banks like Goldman Sachs and Rothschild are working with SAMA on tokenization projects. These aren’t crypto coins. They’re digital versions of traditional assets-bonds, real estate, trade finance-converted into secure, blockchain-based tokens. Think of it like digital stock certificates, but faster and traceable. And here’s the kicker: these projects are fully compliant. They’re not breaking the rules. They’re operating inside them. So Saudi Arabia isn’t anti-tech. It’s anti-unregulated. It’s fine with digital money-if the government controls it.
What About Regular People?
The rules don’t apply to individuals. You won’t get arrested for buying Bitcoin on Binance or Kraken from your phone. But here’s the catch: you’re on your own. Saudi Arabia has one of the youngest populations in the world-63% of people are under 35. And this group is tech-savvy, curious, and willing to take risks. Crypto adoption is growing fast. Peer-to-peer trading, local Telegram groups, and offshore exchanges are booming. Some Saudis use crypto as a hedge against inflation or as a way to send money abroad without going through traditional banking channels. But again-no protection. No oversight. No legal rights. If you lose your keys, get scammed, or your exchange freezes your funds, you can’t go to court and demand justice. The government won’t help you. Your bank won’t reverse the transaction. You’re outside the system.The Gray Zone
Legally, cryptocurrencies aren’t banned by name in Saudi law. The Anti-Money Laundering Law and the Counter-Terrorism Financing Law define “funds” broadly to include any digital asset. That means if you use crypto for illegal purposes-like funding terrorism or laundering drug money-you can still be prosecuted. But if you’re just buying Bitcoin to hold? The law doesn’t say you can’t. It just says no institution can touch it. This creates a strange situation: crypto exists in a legal gray zone. It’s not legal. It’s not illegal. It’s just ignored-except when it comes to financial institutions, which are strictly forbidden from participating.
What’s Next?
There’s no sign the ban on banks will lift soon. But the government’s blockchain investments suggest they’re not shutting the door forever. They’re building a parallel system-one where digital assets are controlled, audited, and compliant with Sharia and global standards. Some analysts believe Saudi Arabia will eventually launch a regulated crypto exchange, but only under strict conditions: full KYC, local licensing, Sharia compliance reviews, and government oversight. Until then, the message stays the same: leave crypto to the individual, but keep it away from the financial system.What This Means for You
If you’re a Saudi citizen:- You can trade crypto personally, but you do so at your own risk.
- Never use a Saudi bank account to deposit or withdraw crypto funds-your account could be frozen.
- Don’t trust any platform claiming to be “licensed by SAMA.” No such thing exists.
- Keep records of your transactions. If you’re ever questioned, you’ll need proof it’s personal, not business-related.
- Do not offer crypto services. Period.
- Train your staff to recognize and reject any crypto-related requests.
- Monitor for clients trying to use your services to move crypto funds-this is a red flag.
- Focus on blockchain-based tokenization projects instead. That’s where the legal opportunity lies.
Bottom Line
Saudi Arabia’s crypto warning isn’t about fear of technology. It’s about control. The government wants to innovate-but only on its terms. Crypto for the people? Fine. Crypto for banks? No. Digital money? Yes-if the state issues it. Until the rules change, the safest move is to respect the boundaries. Don’t risk your account. Don’t trust shady platforms. And don’t assume the government will bail you out if things go wrong.Is cryptocurrency illegal in Saudi Arabia?
Cryptocurrency isn’t explicitly banned by name in Saudi law, but it’s not legally recognized either. The Saudi Central Bank (SAMA) and Ministry of Finance have issued clear warnings that financial institutions must not engage with crypto. For individuals, trading is not prohibited-but it’s completely unregulated and unprotected. So while you won’t go to jail for buying Bitcoin, you have no legal recourse if something goes wrong.
Can Saudi banks offer crypto services?
No. All licensed financial institutions in Saudi Arabia are strictly prohibited from offering any crypto-related services. This includes buying, selling, holding, or advising on cryptocurrencies. Violating this rule can lead to fines, license revocation, or legal action. SAMA has made this clear in multiple official statements since 2018.
Why is Saudi Arabia investing in blockchain if crypto is banned?
Saudi Arabia is separating crypto from blockchain. While public cryptocurrency trading is restricted, the government is actively developing its own digital currency (CBDC) through Project Aber with the UAE. It’s also encouraging banks and institutions to tokenize traditional assets like bonds and trade finance using secure, permissioned blockchain systems. These projects are fully regulated and controlled by the state-unlike decentralized crypto.
Can I use crypto to send money to family abroad?
Technically, yes-you can send crypto internationally using peer-to-peer platforms. But it’s risky. Saudi banks monitor transactions closely, and sending crypto through a bank account may trigger fraud alerts or freeze your account. There’s also no legal protection if the recipient doesn’t receive the funds or if the exchange collapses. Traditional remittance channels are safer and fully compliant.
Are there any licensed crypto exchanges in Saudi Arabia?
No. There are no licensed cryptocurrency exchanges operating in Saudi Arabia. Any platform claiming to be regulated or approved by SAMA or the CMA is misleading you. All exchanges accessible to Saudis are foreign-based and operate outside Saudi law. Use them at your own risk.
What happens if I get caught using a bank account for crypto trading?
If your bank detects crypto-related transactions-like deposits from Binance or withdrawals to a crypto wallet-they may freeze your account for investigation. You could be flagged for potential money laundering under Saudi AML laws. While individuals aren’t typically prosecuted for personal crypto use, banks are required to report suspicious activity. Your account could remain locked for weeks or months while they review your history.
Is there a chance Saudi Arabia will legalize crypto in the future?
It’s possible-but only under strict conditions. Saudi Arabia is building the infrastructure for regulated digital assets through tokenization and CBDCs. A future licensed crypto exchange could emerge, but it would likely require full KYC, Sharia compliance certification, government oversight, and restrictions on leverage and speculation. Don’t expect open-market trading anytime soon. The government will control the terms.
Michael Heitzer
November 11, 2025 AT 12:07It's fascinating how Saudi Arabia draws such a sharp line between technology and control. They're not anti-innovation-they're anti-anarchy. Blockchain as a state-controlled tool? That's not fear of tech, it's mastery of it. The real question is whether other nations will follow suit or keep letting crypto run wild like a wild west frontier. Maybe the future isn't decentralized at all-it's just better regulated.
And honestly, if you're going to use crypto, at least don't mix it with your bank account. That's like using a flamethrower to light a candle. You're not just risking your money-you're risking your entire financial identity.
Also, the fact that they're building CBDCs with the UAE? That's a quiet power play. They're not just keeping up-they're setting the standard for the region. Smart move.
But yeah, the gray zone is real. You can buy Bitcoin, but if you get scammed? Good luck explaining that to a judge who doesn't even recognize it as property. That's not freedom-that's abandonment.
Still, I respect the clarity. No false promises. No 'maybe someday.' Just: 'This is how it is.' Sometimes that's the most responsible thing a government can do.
And for the young Saudis trading on Telegram? I hope they're keeping backups. And maybe a second phone.
One day, they might look back and laugh at how naive we were to think decentralization meant freedom. Maybe it just meant isolation.
Anyway, I'm not here to judge. Just to observe. And maybe, just maybe, to learn.
Also, Project Aber? That's the real crypto future. Not Bitcoin. Not Dogecoin. A digital riyal that moves faster than your thoughts. That's power.
And I'm not even mad. I'm impressed.
Now if only the U.S. could make up its mind about anything.
Rebecca Saffle
November 13, 2025 AT 01:45This is why the West is falling apart-letting chaos be called freedom. If you can't regulate it, ban it. Simple.
Adrian Bailey
November 14, 2025 AT 13:29Man I just read this whole thing and I’m like… wow. So Saudi’s like ‘you can have crypto but only if you’re not a bank and you’re not protected and you’re totally on your own’? That’s wild. I mean, I get it, right? Like, they don’t want money laundering or sharia violations, but also they’re building their own blockchain thingy so… it’s like they’re saying ‘we’ll do it better.’
And honestly? I think that’s kinda genius. Why let some random guy in Belize run a crypto exchange that might vanish tomorrow when you can build your own digital currency that actually works? Plus, tokenizing bonds and real estate? That’s next-level finance stuff. I didn’t even know that was a thing.
Also, I just looked up Project Aber and it’s like… a joint CBDC with the UAE? That’s huge. Like, Middle East tech alliance? Yes please.
But then I think about my cousin in Riyadh who bought Dogecoin because his friend on TikTok said it’d make him rich… and now he’s stuck with 10,000 DOGE and no way to cash out. Poor guy.
And don’t even get me started on the Telegram groups. I swear half the Saudis I know have a ‘Crypto Saudi’ group where people trade like it’s a garage sale. No KYC. No rules. Just vibes.
Also, I think I typo’d something. I’m so tired. But yeah. I think Saudi’s doing the right thing. Not perfect, but smart. Like… adulting in a world full of crypto bros.
Also, I hope they make a SaudiCoin. I’d buy it. Just to be supportive. 😅
Rachel Everson
November 14, 2025 AT 18:49Really appreciate how clear and balanced this breakdown is. So many people just scream ‘crypto bad!’ or ‘crypto revolution!’ but this? This is nuance. Real, grounded, practical insight.
And the part about individuals being on their own? That’s the truth. No one’s coming to save you if your wallet gets hacked. But that doesn’t mean you shouldn’t explore it-just know the stakes.
Also, the blockchain vs. crypto distinction? Perfect. So many people confuse the two. Blockchain is the tool. Crypto is one possible (and risky) use. Saudi’s using the tool without the risk. Smart.
And for anyone thinking of using crypto to send money home? Please, please, please use traditional channels. The fees are low, the process is legal, and your family won’t wake up to a frozen account.
You’re not wrong for wanting to use tech. You’re just wrong for ignoring the consequences. And I’m glad Saudi’s being upfront about it.
Keep sharing stuff like this. We need more clarity, not noise.