The Saudi Arabian Joint Regulatory Committee has issued a ruling regarding cryptocurrency trading. The purpose of this regulation is to protect investors from the “high risks” associated with the digital asset market.
The statement appeared yesterday on the Saudi Arabian Monetary Authority website. It said virtual currencies carry “extremely high risks” as well as other unforeseen “negative consequences.” The speculative nature of cryptocurrencies was also addressed in the publication.
According to the resolution, the lack of “government oversight” creates an unfavorable environment for trading currencies such as Bitcoin and Ethereum. The statement goes on to say that "virtual currencies are illegal in the Kingdom and states that there are no groups, companies or individuals that can be exempted from these restrictions."
The committee that issued yesterday's ruling is made up of members of the country's Capital Market Authority (CMA), the Ministry of Interior, the Ministry of Media, the Ministry of Trade and Investment and the Saudi Arabian Monetary Authority (SAMA).
The panel was formed to examine the risks associated with cryptocurrencies and trading on foreign exchangers. They are also trying to suppress advertising for platforms that provide such services within the country.
Interesting fact: despite all the government’s attempts, there are still trading platforms operating inside Saudi Arabia that allow traders to buy and sell digital currencies. According to Arabian Business, many of these platforms claim to have government approval for cryptocurrency trading. Given yesterday's ruling, it is safe to say that they are deceiving their customers.
It appears that Saudi Arabia has decided to take a tougher stance on cryptocurrencies. Previously, the country's government decided not to interfere in the financial innovation sector. And last year, SAMA representatives stated that this market is not yet developed enough to consider the issue of its regulation.
According to https://www.newsbtc.com
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