The authorities also pointed out that cryptocurrency trading is not supervised by the government and it also has a reputation for being used in many illegal activities.
In May, BitMoneyNews.com featured an article entitled "Saudi Arabia Continue To Be The No.1 Country Championing Cryptocurrency".
"The US does not have to get involved or interfere in every issue that's out there before countries..."
It was therefore a somewhat unpleasant surprise when news broke today that a standing committee made up of various Saudi government ministries as well as the Saudi central bank had issued a warning stating that any trading of "unauthorized crypto currencies" such as Bitcoin is now deemed to be illegal within Saudi Arabia. The reasons, it claimed, were due to "their negative consequences and high risk on traders" since they are beyond the purview of governmental supervision.
The standing committee is also working with relevant bodies to reduce such marketing activities, not just for cryptocurrency trading but also forex trading on sites that aren't regulated by SAMA or CMA officials.
Additionally, the committee has warned the general public of the risks that come with investing in cryptocurrencies. It's not under control.
The Kingdom of Saudi Arabia recently reinforced its stance on the illegality of cryptocurrency trading in the country.
The post goes on to state that "virtual currencies... are illegal in the kingdom", before offering a reminder that there are no groups, companies, or individuals exempt from such a ban by way of licensing.
Brought into being by a supreme decree, the Standing Committee for Awareness on Dealing in Unauthorized Securities Activities in the Foreign Exchange Market was formed by five of the Middle Eastern country's watchdogs, including the Capital Market Authority (CMA) and the Saudi Arabian Monetary Authority (SAMA), the country's de facto central bank.