The Saudi Ministry have warned traders in the nation against the use of virtual currencies. The ministry says the currencies are not recognised as legal entities in the kingdom and are outside the scope of the regulatory framework. One of the main concerns the ministry has is the association with fraudulent activities and attract the suspicion of use in illegal and illegitimate financial activities in addition to their high-investment risks related to frequent price fluctuations. It has to be said that jewellery and cash have been proven to be used in the past to fund illicit actions but I am guessing the government may not be able to track cryptocurrencies as easily.
The Ministry of Finance (MOF) said ” Virtual currencies have appeared claiming their relationship to financing of projects, activities or investment in KSA and using the name of the national currency of KSA (Saudi Riyal), or KSA’s emblem (two crossed swords with a palm tree) for misleading marketing of its activities such as (Crypto Riyal) or other virtual currencies. MOF warns that any use of the KSA name, national currency, or emblem by any entity for virtual or digital currencies marketing will be subject to legal actions by the competent authorities in the Kingdom.
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