Cryptocurrency has taken the financial world by storm, offering investors and tech enthusiasts new ways to store value, transfer assets, and grow wealth. But while Bitcoin, Ethereum, and other digital currencies are traded globally, many people in Saudi Arabia are still asking a crucial question:
Is cryptocurrency trading legal in Saudi Arabia?
In this 2025 guide, we break down everything you need to know about the legality of crypto in the Kingdom — including regulations, risks, platforms, and the future outlook for digital assets in Saudi Arabia.
What Is Cryptocurrency?
Before diving into regulations, let’s define what we’re talking about.
Cryptocurrency is a type of digital currency that uses encryption technologies to secure transactions and control the creation of new units. It operates on decentralized networks such as blockchain, free from central banks or government control.
Popular examples include:
- Bitcoin (BTC)
- Ethereum (ETH)
- Ripple (XRP)
- Solana (SOL)
- Tether (USDT)
The Official Stance on Cryptocurrency in Saudi Arabia
Cryptocurrency Is Not Officially Legal — But Not Fully Banned
As of 2025, cryptocurrency is not considered legal tender in Saudi Arabia, and it is not regulated under the country’s financial system. However, it is not explicitly banned either. The government maintains a cautious approach, warning citizens of the risks involved in trading crypto assets.
What the Authorities Say:
- Saudi Central Bank (SAMA) and the Capital Market Authority (CMA) have warned against trading cryptocurrencies due to their high volatility and potential for fraud.
- In 2018, a joint statement from various regulators declared crypto trading to be “illegal in the Kingdom” but without enforcing criminal penalties.
- By 2023–2024, the Kingdom started studying blockchain applications more seriously and launched several central bank digital currency (CBDC) pilot projects.
Can Saudis Buy and Trade Crypto?
Yes, Saudis can technically trade crypto online — but with several caveats:
Allowed (With Caution):
- Buying and selling crypto through international exchanges like Binance, Bybit, or Coinbase.
- Using peer-to-peer (P2P) platforms to convert SAR into Bitcoin or USDT.
- Holding crypto in personal wallets.
Not Allowed:
- Launching local crypto exchanges without a license.
- Using crypto for payments within Saudi Arabia (crypto is not recognized as legal tender).
- Advertising crypto investment schemes or unregulated services.
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Risks of Trading Crypto in Saudi Arabia
1. Lack of Legal Protection
Since crypto isn’t regulated in the Kingdom, investors who are scammed or lose access to their funds have no legal recourse.
2. Banking Restrictions
Banks may flag or freeze accounts involved in suspicious crypto-related transactions, especially large or frequent transfers to foreign exchanges.
3. Scams and Fraud
Saudi regulators have issued multiple warnings against Ponzi schemes, fake tokens, and social media “crypto influencers” who promote illegitimate projects.
4. Volatility and Market Risk
Cryptocurrencies are highly volatile. Losses can be substantial if the market moves against you, and there are no government bailouts or guarantees.
How to Trade Crypto in Saudi Arabia (Safely)
If you choose to explore crypto despite the risks, here are some steps to protect yourself and remain compliant:
1. Use Reputable International Platforms
Some of the most commonly used platforms by Saudis include:
| Exchange | Key Features |
|---|---|
| Binance | Low fees, high liquidity, P2P trading |
| Bybit | Derivatives and spot trading |
| OKX | Secure and user-friendly |
| KuCoin | Broad token selection |
2. Convert SAR to Crypto Safely
- Use P2P exchanges with verified users and escrow services.
- Transfer funds using safe payment channels (bank transfer, STC Pay, etc.).
- Avoid sharing personal bank details publicly.
3. Store Crypto in a Wallet You Control
- Use a hardware wallet (like Ledger or Trezor) for large balances.
- For smaller amounts, trustworthy hot wallets like Trust Wallet or MetaMask are options.
Can Expats Trade Crypto in Saudi Arabia?
Yes — expats with legal residency (Iqama) can access the same platforms, but they face the same regulatory uncertainties. It’s essential to avoid using local bank accounts for suspicious transactions, and never promote or offer crypto services to others without proper licensing.
Government-Backed Blockchain Projects
Despite its cautious stance on crypto, Saudi Arabia has shown interest in blockchain technology itself.
Key Initiatives:
- Aber Project: A central bank digital currency (CBDC) pilot launched jointly with the UAE.
- Digital Riyal Study: Ongoing research into a government-backed digital currency.
- Blockchain Use in Supply Chain: Pilots in logistics, oil, and healthcare sectors.
The Future of Cryptocurrency in Saudi Arabia
1. Regulated Crypto Market Possible
As global regulation frameworks evolve, Saudi Arabia may eventually introduce licensing for exchanges and crypto brokers, especially to monitor capital flows and taxation.
2. Taxation of Crypto?
Although there is no personal income tax in Saudi Arabia, future frameworks may include VAT on crypto-related services or mandatory KYC/AML compliance.
3. More CBDC Developments
Frequently Asked Questions (FAQs)
Can I buy Bitcoin in Saudi Arabia?
Yes, but it is unregulated. You can use global exchanges or P2P platforms at your own risk.
Is it illegal to hold cryptocurrency?
No. Holding crypto is not banned, but it is not legally protected either.
Not currently. Running a local crypto exchange without CMA approval is prohibited.
Will Saudi Arabia regulate crypto soon?
Possibly. Regulatory frameworks are under review, especially as more GCC countries adopt crypto rules.
Final Thoughts
Cryptocurrency trading is not fully legal or illegal in Saudi Arabia—it exists in a regulatory gray area. Individuals can buy, sell, and hold crypto at their own risk, but they must remain cautious and well-informed.
- Use only secure, international platforms.
- Protect your data and funds with proper security measures.
- Never promote or sell unlicensed crypto services.
- Stay updated with the latest SAMA and CMA guidelines.