Wealth Management

Saudi Arabia warns against dealing in cryptocurrencies

Bloomberg/Chris Ratcliffe

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The Kingdom said that the use of Saudi Arabia’s name, national currency or emblem by any entity for digital currencies marketing will be subject to legal actions.

Wednesday 21, August 2019 BY MUZORIWA KUDAKWASHE

Saudi Arabia’s Ministry of Finance (MOF) has warned against dealing or investing in digital currencies including cryptocurrencies as they are not recognised by legal entities in the Kingdom, according to local newswire.

The finance ministry stated that digital currencies are outside the scope of the regulatory framework and are not traded by financial institutions in Saudi Arabia, adding that such cryptocurrencies have been associated with fraudulent activities and attract suspicion of use in illegitimate financial activities in addition to their high-investment risks related to frequent price fluctuations.

Additionally, the ministry said that some digital currency dealers have appeared claiming their relationship to financing projects, activities or investment in the Kingdom as well as using the name of the national currency such as Crypto Riyal as well as the national emblem (two crossed swords with a palm tree) for misleading marketing of its activities.

 

TAGS : Saudi Ministry of Finance , Crypto Riyal, cryptocurrencies, digital currencies

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