The standing committee for awareness on dealing in unauthorized securities activities in the foreign exchange market warns: “The unauthorized virtual currencies are illegal inside the Kingdom of Saudi Arabia”.
The standing committee warns against trading in the digital currencies or what is known as virtual currency for their negative consequences and high risks on traders as they are out of government supervision. 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 warns all citizens and residents about drifting after such illusion and get-rich scheme due to the high regulatory, security and market risks involved, not to mention signing of fictitious contracts and the transfer of funds to unknown recipients/entities/parties.
It is noteworthy, that the standing committee which was formed by the supreme decree headed 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). As required by the supreme decree, the standing committee works with relevant parties in order to reduce marketing for investment and trading in Forex and virtual currencies by reporting on SAMA or CMA official websites.
The standing committee confirmed that government parties relevant to investment in the financial sector provide all needed information about authorized parties that interested investors can refer to as they are under supervision by the controlling authorities.