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Saudi Government Warns Against Use Of Cryptocurrency

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A Saudi Arabian government committee has warned against the use of virtual or cryptocurrencies such as Bitcoin in financial transactions.

A Saudi Arabian government committee that oversees the foreign exchange market has warned against the use of virtual or cryptocurrencies such as Bitcoin in financial transactions.

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The committee has warned of possible “negative consequences” arising from transactions carried out with virtual currencies.

Bitcoin and other cyrptocurrencies are not approved in Saudi Arabia. Claims by forex platforms promoting Bitcoin transactions that they are authorised to operate in the Kingdom are false, the committee stated.

The committee has issued a broader warning on the perils of forex trading, saying that it, “exploits the lack of knowledge of a large number of dealers in the rules and regulations of the financial market”. Those dealing in forex, the committee said, are often motivated by the desire to make a quick buck, “without being aware of [the] associated risk with such dealings”.

SEE ALSO: KSA to have bankruptcy law in place in August

The committee is headed by the Capital Markets Authority and includes representatives of the Ministry of Interior, Ministry of Culture and Information, Ministry of Commerce and Investment, and The Saudi Arabian Monetary Authority (SAMA).

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