Hold on a second. You’ve heard Saudis are buying crypto like it’s going out of style. You’ve seen the headlines: $31 billion in transactions in a year, 4 million people owning Bitcoin, one of the fastest-growing crypto markets in the Middle East. So why does the government keep warning people not to touch it?
The truth isn’t black and white. In Saudi Arabia, holding cryptocurrency isn’t officially legal - but it’s also not officially illegal. You’re living in a gray zone where millions are trading, investing, and holding digital assets, while the state watches, warns, and slowly builds its own digital currency behind the scenes.
What the Government Actually Says
In 2018, Saudi Arabia’s government committee declared virtual currencies illegal. No licenses. No recognition. No protection. That warning came again in 2019 from the Ministry of Finance: "Virtual currencies are not recognized or regulated by any official entity in the Kingdom." Banks were told: don’t touch crypto. Financial institutions were banned from trading it. The message was clear - stay away.
But here’s the twist: that same year, a top religious authority issued a fatwa - a formal Islamic legal opinion - stating that Bitcoin and other cryptocurrencies don’t violate Sharia law. That wasn’t just a side comment. In Saudi Arabia, religious rulings carry real weight in shaping policy. That fatwa didn’t make crypto legal, but it cracked open the door.
Today, the official stance hasn’t changed. There’s no law that says "you can own crypto." But there’s also no law that says "you’ll go to jail for owning it." The government doesn’t prosecute individuals for holding Bitcoin. Instead, they warn. They scare. They block banks. They threaten legal action against companies that use Saudi branding to promote crypto.
So Why Is Everyone Still Buying It?
Because the market doesn’t care about legal ambiguity when the returns are real.
In 2024, Saudi Arabia’s crypto market hit $23.1 billion. By 2033, it’s projected to hit $45.9 billion. That’s not a guess - it’s a forecast from analysts tracking real transaction data. From July 2023 to June 2024, crypto transactions in the Kingdom jumped 153%, crossing $31 billion. That’s more than the entire crypto volume of most European countries.
Why? Because 63% of Saudi Arabia’s population is under 30. They’re tech-savvy, globally connected, and tired of traditional banking limits. They use peer-to-peer apps, VPNs, and international exchanges to buy Bitcoin, Ethereum, and altcoins. Over 11.4% of Saudis - about 4 million people - now hold crypto. That’s one in nine. And it’s growing.
Even more telling: Saudi Arabia is the second-largest crypto market in the Middle East, behind only the UAE. And it’s growing faster.
Who’s Allowed to Play - and Who’s Not
There’s a double standard in Saudi crypto policy. Regular people? Told not to touch it. Big institutions? Welcome to the future.
Banks and financial firms are banned from crypto trading - unless they get special approval from SAMA, the Saudi Central Bank. And even then, it’s rare. But here’s what’s happening behind closed doors: Goldman Sachs and Rothschild are setting up tokenization platforms in Riyadh. They’re not trading Bitcoin. They’re turning bonds, real estate, and trade finance into digital tokens on blockchain networks.
That’s not crypto speculation. That’s institutional finance moving online. And the government is encouraging it.
SAMA is also deep into developing its own digital currency - the Riyal Digital. They’ve been testing it since 2019 with the UAE in a project called Aber. In 2024, they joined the mBridge pilot with China, Thailand, and Hong Kong to test cross-border CBDC payments. This isn’t about replacing cash. It’s about controlling the future of money.
So while you’re buying ETH on Binance, the state is building its own version of crypto - one it can monitor, track, and control.
Taxes: No Capital Gains, But Watch Out
If you make money on crypto in Saudi Arabia, you don’t pay capital gains tax. Not a cent. That’s a big deal. Most countries tax your profits. Saudi Arabia doesn’t - for individuals.
But if you’re a business? Different story. Companies that trade or hold crypto as part of operations may face a 15% capital gains tax. On top of that, corporate income is taxed at 20%, and you’ll owe 2.5% zakat - a mandatory Islamic charitable contribution.
And yes, the Anti-Money Laundering Law applies. Even though crypto isn’t officially recognized, the law defines "funds" broadly to include any digital asset. That means if you’re moving large amounts of crypto, you could still be flagged for suspicious activity - especially if you’re using unregulated exchanges.
What Happens If You Get Caught?
Most people never get caught. There are no known cases of individuals being prosecuted for simply holding crypto.
But if you’re running a business that promotes crypto services - like a local exchange, a crypto ATM, or a marketing campaign that says "Buy Bitcoin in Saudi Arabia" - you’re asking for trouble. The Ministry of Finance has warned: using national symbols or Saudi branding to promote crypto is illegal and will lead to legal action.
There’s no official KYC or AML framework for crypto users. That’s not because the government doesn’t care - it’s because they don’t want to legitimize it. They’re waiting. Watching. Letting the market grow - but keeping the leash tight.
The Future: What’s Coming in 2025 and Beyond
Everyone expects new crypto laws in Saudi Arabia by 2025. Not because the government changed its mind - but because the market is too big to ignore.
The goal? A regulated framework that allows institutional adoption, protects consumers, and keeps control in state hands. Expect licensing for exchanges, mandatory reporting for large transactions, and maybe even a government-approved crypto wallet.
But don’t expect Saudi Arabia to become Switzerland. This isn’t about freedom. It’s about control. The Kingdom wants to lead the digital finance revolution - on its own terms.
Right now, you can hold crypto. You can trade it. You can make money. But you’re doing it in a legal shadow. There’s no safety net. No recourse if an exchange gets hacked. No protection if the rules suddenly change.
Should You Hold Crypto in Saudi Arabia?
If you’re an individual with a small portfolio, the risk is low. Millions are doing it. Taxes aren’t an issue. The government isn’t knocking on doors.
But if you’re thinking of starting a business around crypto? Don’t. Not yet. The rules are too unclear. The penalties too severe.
Use reputable international exchanges. Don’t use Saudi-based platforms. Keep your holdings in non-custodial wallets. Don’t advertise. Don’t promote. Don’t link your name to crypto services.
And keep an eye on 2025. That’s when everything could change - for better or worse.
Bottom Line
Crypto isn’t legal in Saudi Arabia. But it’s not banned either. It exists in a space the government doesn’t want to acknowledge - yet can’t stop. Millions are holding it. Institutions are building on it. The state is building its own version of it.
For now, holding crypto is a personal risk. Not a legal one. But that could shift overnight. Stay informed. Stay cautious. And don’t assume the rules will stay the same.
6 Comments
Bro just buy BTC and chill 😎 the government’s gonna regulate it eventually anyway - by then you’ll be rich and they’ll be begging you to use their digital riyal 🚀
Actually, the fatwa from 2019 is the key here - Islamic finance scholars have long debated crypto’s permissibility, and Saudi Arabia’s top clerics leaning toward ‘not haram’ is a massive deal. It’s not about legality, it’s about theological acceptance. That’s why adoption is exploding despite the warnings. The state can’t ban what religion doesn’t condemn.
Plus, the 63% under-30 demographic? They don’t care about legal gray zones. They care about access, returns, and autonomy. Traditional banking in KSA is slow, restrictive, and frankly outdated. Crypto is the only way they feel financially free.
And yes - the Riyal Digital is the real play. They’re not fighting crypto. They’re replacing it with something they control. Smart move, really.
Just don’t use local exchanges. Stick to non-custodial wallets. Keep your keys. Stay off the radar. And don’t post about it on LinkedIn. Trust me.
Oh wow, so holding crypto is ‘not illegal’? That’s like saying it’s not illegal to juggle chainsaws in a library - technically true, but you’re still gonna get thrown out.
And let’s not pretend the government ‘doesn’t prosecute individuals.’ They just don’t need to. They block banks, freeze accounts, and make it impossible to cash out without raising red flags. It’s psychological warfare wrapped in bureaucratic ambiguity.
Also, ‘no capital gains tax’? Congrats, you’re the only country in the world that lets you profit from speculation without accountability. That’s not freedom - that’s a regulatory vacuum waiting to implode.
Y’all are acting like this is some underground rebellion. Nah. It’s a gold rush with a side of existential dread.
I’ve got 5 BTC in a Ledger. My cousin in Jeddah bought 12 ETH last year on Binance. We don’t talk about it. We don’t post about it. We don’t even say ‘crypto’ out loud in front of our parents.
But guess what? We’re all gonna be rich when the government finally flips the switch and launches their official wallet. They’ll call it ‘RiyalCoin’ and make us migrate. We’ll laugh while we cash out.
Meanwhile, the banks are still stuck in 2007. The youth? They’re already in 2030. The state? They’re just trying to catch up without losing control. Classic Saudi move.
And yes - if you’re using a Saudi-based platform, you’re already dead. Get your ass to Kraken or Coinbase. Use a VPN. Pay in SAR via peer-to-peer. Stay low. Stay smart.
Also - zakat on crypto? Yeah, some scholars say you owe it. Others say it’s just digital paper. Do your own research. But don’t tell me you’re ‘halal’ and then brag about your 200% ROI on XRP. That’s not faith. That’s greed.
Oh my god, another ‘crypto in Saudi Arabia’ think piece. Can we please stop pretending this is a revolutionary story? It’s not. It’s the same script every time: government says ‘no,’ people do it anyway, then the government builds a better version to steal it.
And the ‘no taxes’ thing? Please. That’s not a perk - it’s a red flag. No tax means no oversight. No oversight means no protection. No protection means when your exchange gets hacked or your wallet gets frozen, you’re SOL.
Also, ‘4 million Saudis hold crypto’? That’s 11.4% of the population. So what? That’s less than the percentage of Americans who own a pet iguana. Stop exaggerating.
And the fatwa? Cute. But if religion could stop greed, we wouldn’t have banks.
This isn’t innovation. It’s desperation dressed up as disruption.
As someone from India, I find this situation fascinating. In our country, crypto is under heavy regulation, yet people still trade it. But in Saudi Arabia, the religious angle adds a whole new layer.
I think the real story here isn’t about legality - it’s about cultural adaptation. The youth are using crypto not just as an investment, but as a form of resistance against outdated financial systems. The government knows this. That’s why they’re building their own digital currency - to channel that energy into something controllable.
Still, I worry. When the state controls the blockchain, it’s no longer decentralized. It’s just another surveillance tool.
And yes - zakat on crypto holdings? Many scholars say yes. If you’re holding for over a year, you owe 2.5%. Ignoring that isn’t smart. It’s not just about law - it’s about faith.