Saudi Arabia has many restrictions on various aspects of life. Now there's another one as their standing committee made up of many government ministries along with their central bank has issued a warning that unauthorised cryptocurrencies such as Bitcoin is illegal in the Arab nation.
Saudi Arabian Monetary Authority has released a statement to this effect.
The standing committee for awareness on dealing in unauthorized securities activities in the foreign exchange market (Forex) warns: “The unauthorized virtual currencies are illegal inside the kingdom of Saudi Arabia”
The standing committee warns against trading in the digital currencies or what is known as virtual currency for their negative consequences and high risks on traders as they are out of government supervision. The committee assured that virtual currency including, for example but not limited to, the Bitcoins are illegal in the kingdom and no parties or individuals are licensed for such practices.
The committee warns all citizens and residents about drifting after such illusion and get-rich scheme due to the high regulatory, security and market risks involved, not to mention signing of fictitious contracts and the transfer of funds to unknown recipients/entities/parties. .
It is noteworthy, that the standing committee which was formed by the supreme decree headed by Capital Market Authority (CMA), Ministry of Ministry of Interior membership, Ministry of Media, Ministry of Commerce and Investment and Saudi Arabian Monetary Authority (SAMA). As required by the supreme decree, the standing committee works with relevant parties in order to reduce marketing for investment and trading in Forex and virtual currencies by reporting on SAMA or CMA official websites.
So basically it seems as though Saudi Arabia must have seen it's share of MLMs or Ponzi schemes or perhaps its the crazy volatility experienced in this domain which is beyond the control of any government supervision seems to have pushed them into making such as hasty decision.
But as it turns out SAMA is building it's own custom cryptocurrency for cross border transactions with UAE's central bank according to CCN. But it's interesting to note that their central bank is using Ripple's xCurrent software built on blockchain technology.
I'm sure many of you in India are wondering about the status of Bitcoin and cryptocurrencies in our own country. India has not banned cryptocurrencies and neither has RBI. The central bank in India has only directed its licensed banks to not provide banking services to cryptocurrency exchanges in India.
If you are interested in learning more about p2p in India you can read this post and to further understand the legality of cryptos in India read this!
Overall this move from Saudi Arabia seems shortsighted. The middle east is grappling with the possibility of life after oil by investing in futuristic technologies to future-proof itself as its oil reserves continue to reduce. So, this move comes as a bit of a shock that their government isn't mature enough to be open-minded about decentralised blockchains and cryptocurrencies such as Bitcoin.
Saudi Arabia and many middle eastern countries have several migrants from various countries especially India. This move will hinder everyone's ability to purchase and sell Bitcoin. Although the government at this point in time hasn't imposed any specific penalties for trading in Bitcoin. Hopefully it won't be as extreme as being flogged in public or worse!
If you like my work kindly resteem it to your friends. You may also continue reading my recent posts which might interest you:
- Let's Watch This Fun Video From International Steem Meetup #1—Malaysia
- Why You Should Vote For @firepower As Witness—Witness Campaign Post From India!
- Steem.Chat Contest #39
For a country that has no human rights, that is an aggressor of its neighbors, the financier of proxy wars and foreign meddling, the birthplace of Al-Qaeda and Wahhabi terrorism (ISIS), I'm not surprised one bit by their ban on cryptos. What good have they brought to the world? They will keep going backwards until their oil dries up. Who would want to live there anyways.
It really is amazing we are considered "allies" with them and no one bats an eye. You would think with the outrage culture we now live in that people would be calling out saudi arabia all the time... but go figure, instead there is just complete silence. Say the "N" word and your life and/or job is over, yet fund terrorist and be against basic human rights and everyone just plays dumb. Oh what a weird world we live in...
It's a monarchy that doesn't like criticism (like any other dictatorship). Look at the recent events with Canada. Kudos to Trudeau for his firm stance against their bullshit. Of course, Canada standing alone in this dispute tells volumes about the power of oil. So much for having allies in this world, they can drop you in a heartbeat. Canada doesn't give a crap because it's the #1 oil exporter to the USA, so they can afford to (finally) lecture the Saudis about human rights.
Luckily as we both know they are not going to be the #1 oil producer for much longer, I wonder how fast the world will throw them under the bus when they no longer suit their interests?
They are buying into Tesla and other renewables , they are going to be around. ..for a while !!
Recent events with Canada really pissed me off about Saudi Arabia. Seriously the country is living in the dark ages!
I think it’s only going to set them back a few more years before they confirm once it becomes a world standard and by then getting in will have high cost for their citizens and institutions!
Countries Iike these are highly centralized and crypto is defiantly a threat to the way their conduct business more so than other regimes!
Also if the world does make the switch to renewable energy their propped up national currency based on oil will start to collapse so as much as they trying to safe gaurd in the short term, they screwing themselves over in the long term!
Excluding yourself from what will be a massive global economy of free trade can only be politically motivated by those trying to retain the current status quo
Just one more reason to say FUCK Saudi Arabia!
I really have nothing against Saudi but in the past five years I have heard some crazy ass publicity stunts from them, including the citizenship to a robot. Frankly there are countries that need Bitcoin to varying degrees. Given its riches, Saudi probably ranks much lower in the list.
That being said, I have also come to realize that there is possibility that countries that are banning bitcoin might actually be on their way adopting it. The governments need time adjust to the blockchain based fungible tokens. I think that they are straightening out their acts before they take the next step of adoption. Because we all know that the idea of 'anti-fragility' and there is literally no stopping this crypto train. Some countries might just be ahead of the curve without us really even knowing it.
I am personally against this move.
Hi @firepower, I don't think Saudi Arabia take a good move.
It's an expected move. Saudi Arabia is a close country and the cryptocurrencies are the most libertarian things in the world currently. Some other close governments are doing/will do the same in my opinion.
No surprises there.
Few countries are always against new era of digital currencies..
But Arabian ban doesn't much affect market..
Posted using Partiko Android
allow me to share your posts ... because in my opinion this is something everyone should know ... I hope you are always successful ... I hope I can share interesting things like you did
Congratulations @firepower! You have completed the following achievement on Steemit and have been rewarded with new badge(s) :
Click on the badge to view your Board of Honor.
If you no longer want to receive notifications, reply to this comment with the word
STOPI think they are afraid of capital flight via cryptocurrency.
Saudi Arabia's young prince, MBS, trusted McKinsey's very ambitious blueprint and is doing unrealistic economic exercise. Now they clearly need to control the capital very strictly.
I hope they will realize the importance of following this new tech and find a way to develop their society by utilizing this inovation.
oh god
NO
Classify BTC as commodity