Overview
The Saudi regulatory position takes a clear cautious approach toward virtual assets and cryptocurrencies, with repeated warnings from competent authorities about the risks of dealing with them outside licensed frameworks.
A company considering an activity connected to these assets needs a careful and honest assessment of its current regulatory position before proceeding, given that this position differs from other countries that may be more open to this type of asset.
Regulatory Basis
Guidance related to virtual assets is issued by the Saudi Central Bank and the Capital Market Authority, and this guidance takes a strongly cautious approach toward direct dealing with cryptocurrencies.
How We Assess These Matters
We start with a candid and honest assessment of the current regulatory position, without downplaying the actual risks of an activity that may fall outside currently licensed frameworks.
If a permitted path exists for a specific activity, we help structure it to minimize regulatory exposure as much as possible.
Who Needs This Service
A company considering developing a service connected to virtual assets that needs a regulatory position assessment before investing in developing that service.
A company dealing indirectly with these assets, such as a technology service provider for a platform that deals with them, that needs a compliance risk assessment tied to that.
We closely track any new statements or warnings issued by the Saudi Central Bank or Capital Market Authority regarding these assets, given the sensitivity of the topic and how quickly official positions can shift globally, and we make sure to inform clients immediately of any development that might affect an existing or planned activity in this space.
Additional Considerations
Some activities in this space connect with a general license under our fintech law service if the activity is closer to a regulated digital payment or financing service. For companies exploring investment instruments tied to these assets, this connects with our capital markets and securities service.
Common Questions
Is dealing with cryptocurrencies permitted in Saudi Arabia?
The regulatory position takes a clear cautious approach toward these assets, and we give a candid, honest assessment of your specific position rather than a general answer that may not reflect your actual activity.
Does this regulatory position change over time?
We closely track any developments in this area, and make sure to inform clients of any change specific to their activity.