Saudi Regulators Warn Against Trading Cryptocurrencies, Citing ‘High Market Risks’

A governmental committee of those Kingdom of Saudi Arabia has cautioned the people that trading electronic monies is prohibited in the nation, based on a Aug. The warning has been issued from the Standing Committee to get Awareness on Dealing at Unauthorized Securities Activities at the Foreign Exchange Markets.

According into the announcement, digital currencies aren’t understood by the government and no entities are accredited to address them. In the warning, the committee notes “high risks” and “negative consequences” connected with virtual money trading, also urges the public to not fall for so called “get-rich schemes” since they indicate “high regulatory, security, and market risks.” The announcement doesn’t mention that the penalties for people found dealing or trading in cryptocurrencies.

Though Saudi Arabia doesn’t comprehend cryptocurrencies, the nation has adopted the advantages of dispersed ledger technology in a variety of fields. The transfer was created to be able to enhance the standard of municipal services for clients and incorporate leading technology into solutions as part of their Saudi Vision 2030 program.

The Saudi Vision application was initially introduced 2016 from the Crown Prince Mohammad bin Salman and is committed to the economic growth and diversification of the nation’s market. In addition to assigning advanced technologies such as blockchain, the program intends to create such industries as infrastructure, health care, tourism, education, in addition to military spending and production.

In February, SAMA and Ripple announced an arrangement to give assistance for Ripple’s cross-border payments technologies to banks at the Kingdom of Saudi Arabia. The two parties produced a pilot program to encourage Saudi banks in utilizing xCurrent, Ripple’s enterprise software solution that permits banks to immediately settle global payments with end-to-end monitoring.

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