Crypto trading can change people’s lives and their finances. However, this trading is not accepted worldwide. In Saudi Arabia, for instance, the trading of virtual currencies is illegal. We were reminded of that this past weekend.
No Crypto Trading in Saudi Arabia
On Sunday, August 12, a statement was posted by a governmental committee, one that was assembled by a royal order and composed of Saudia Arabian regulators.
The statement didn’t provide a lot of detail, but it did meet its goal: to remind Saudi Arabians (and the world) that cryptocurrency trading is illegal in the desert country.
But why? Well, according to the statement, it’s because cryptocurrencies pose “negative consequences,” as well as “high risks on traders.” These problems occur because virtual currencies “are out of government supervision.”
Trading Anyway
The Saudi Arabian committee highlighted that “no parties or individuals are licensed” to participate in the trading of virtual currencies – and that includes Bitcoin (available on Coinbase) trading.
However, it’s unclear what the consequences are for someone caught trading.
Are We Surprised?
Saudi Arabia making crypto trading illegal isn’t surprising. At least, not to me. The kingdom has made its stance on the matter evident in the past.
Back in 2017, Saudi Prince Al-Waleed bin Talal criticized cryptocurrencies. He spoke negatively of Bitcoin (available on Coinbase) and even called it a “fraud.” He then added that BTC is going to “implode” in the future.
The prince’s bearish comments match the committee’s Sunday statement. Al-Waleed said Bitcoin (available on Coinbase) doesn’t make sense as it’s “not regulated,” and “it’s not under control,” nor is it supervised.
Speaking of Bitcoin (available on Coinbase)
With the world waking up Monday to the reminder that crypto trading in Saudi Arabia is illegal, I suspect a lot of Bitcoin (available on Coinbase) bears are coming out of their dens today.
But am I right? Sort of.
Bitcoin (available on Coinbase) is still trading below the $7,000 price mark. Today, the coin is selling for $6,263.20, which puts it down 1.27% in the past twenty-four hours.
Source: CoinMarketCapIt’s going to be important to watch the Bitcoin (available on Coinbase) price moving forward. If it drops below $6,183, panic may spread throughout the industry.
The Takeaway
What do you think about the Saudi Arabian committee reiterating that cryptocurrency is illegal in the kingdom? Necessary or unnecessary?
Featured Image: Depositphotos/© PromesaStudio
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