Legal Crypto In Saudi Arabia

Introduction

The crypto market has taken a major turn in Saudi Arabia, with its recent growth being compared to global growth throughout the long time span from January. It features an introduction to the legality of digital currencies, most used exchanges and exchange methods, local exchanges, legislation, and current state of the decentralized finance (DeFi) and non-fungible token (NFT) markets in the Kingdom. It also looks into crypto adoption and tax regimes, providing a full picture of the industry.

Legality of Cryptocurrency

In Saudi Arabia, Cryptocurrency is not a legal tender, thus they cannot be used as an official medium to settle bills for items and services. But it is all right for individuals to trade and hold cryptocurrencies. In 2018, the Saudi Arabian Monetary Authority (SAMA), warned banks and payment institutions that dealing in cryptocurrencies had negative implications on economic stability. The advisory has not been followed with an outright ban and enforcement against traders at the retail level has been virtually nonexistent since early crackdowns on Bitcoin miners before 2018, indicating a permissive approach toward people who use, rather than mine Profit Confidential coin.

The government is erring on the side of caution, weighing innovation against risk. Cryptocurrency trading is legal, but users should be careful to avoid getting scammed, as without official transaction mediums there are no protections. This comes in line with the Saudi government’s approach to regulating new technology in the ecosystem with economic stability.

Common Exchanges and How to Trade Them

Saudi Arabia’s cryptocurrency trading is heavily dependant on international exchanges, as local platforms have a limited footprint. Popular international platforms including Binance, Kraken, and Coinbase are used by many Saudi citizens as they support user-friendly interfaces, a large variety of trading pairs and strong security. Binance is especially powerful because of its large number of altcoin offerings and its fees.

P2P trading is rampant, due to limitations on banks handling cryptocurrency transactions. The likes of Binance P2P and Paxful carry out P2P trades, and users may be able to swap digital currencies for fiat money via bank transfers, mobile payments or face-to-face transactions. These approaches are convenient but are not without (some) risk and have received little regulatory oversight. Traders should always check counterparties to reduce the likelihood of getting scammed.

Local Exchanges

Cryptocurrency exchanges are rare in Saudi Arabia, the result of a highly regulated financial industry. Rain, a Bahrain-indeked exchange that also has a large presence in Saudi Arabia, is another major regional platform operating in service of Saudi users. Rain is Sharia compatible, in line with Islamic finance, which adds to its attractiveness. It allows trading in popular cryptocurrencies like Bitcoin and Ethereum and provides custodial services. But unlike Binance, it is not a global platforms and has little reach.

Local exchanges aren’t very strong because of strict regulations and centralized financial control. As a result, the majority of Saudi traders are turning into international or regional trading platforms as local startups struggle to compete in a tightly regulated space.

Key Information on Saudi Arabia’s Cryptocurrency Industry

List of Regulatory Bodies

• Saudi Arabian Monetary Authority (SAMA): Oversees monetary policy and bank regulations.
• Capital Market Authority (CMA): Regulates securities and monitors digital assets resembling investments.
• General Authority of Zakat and Tax (GAZT): Administers taxation, including potential crypto-related taxes.

Table of Cryptocurrency Statistics (2025, Estimated)

Metric	Value
Crypto Ownership Rate	~15% of adult population
Most Traded Cryptocurrency	Bitcoin (BTC)
Average Monthly Trading Volume	$500 million
Number of Active Local Exchanges	1 (Rain)
Blockchain Patents Filed (2024)	25

Note: Statistics are estimates based on regional trends due to limited official data.

Regulatory Laws

Saudi Arabia’s cryptocurrency market is regulated by the financial and AML laws. The Anti-Money-Laundering Law (Royal Decree M/20) of 2018 is the main law relevant to cryptocurrencies, requiring all financial transactions, regardless of whether they involve cryptocurrencies, to adhere to anti-money laundering (AML) and know-your-customer (KYC) procedures. Saudi-based exchanges need to have high KYC standards to prevent nefarious use cases.

SAMA’s 2018 warning prohibits banks from dealing with crypto transactions, thereby reducing the inflow of fiat into crypto markets, and promoting peer-to-peer (P2P) solutions or offshore exchanges. The Capital Market Authority (CMA) oversees securities-type digital assets but regulation of initial coin offerings (ICOs) or token sales is scant. Saudi Vision 2030 is taking steps toward regulating blockchain, however, as of 2025 we are still just wishing for it, the government is just more focused on risk control.

DeFi Market

The DeFi market in KSA is still at its early stage and interest is still low but growing. DeFi (decentralized finance) platforms that facilitate lending, borrowing and trading with no intermediaries are attracting a tech-savvy demographic in Saudi Arabia. Services like Uniswap and Aave are accessible, but adoption is limited by a lack of regulatory clarity, technical complexity and religious beliefs around risky assets. The Saudis see DeFi’s potential for money laundering as dangerous, and it could find itself increasingly regulated. However, interest is being driven by the country’s, young, digital literate demographic, paired with the global DeFi craze.

NFT Market

The non-fungible Token (NFT) market is on the rise in Saudi Arabia with a number of projects focusing on digital art, gaming, and collectibles. Shazni and fellow members of Makkah Solar are capitalising on the hype and the huge rush of publicity around NFTs, or non-fungible tokens – unique digital assets registered on blockchains – that have been catching on with artists and collectors, with local efforts suggested by Saudi culture. Regulatory uncertainty also remains, with NFTs not being clearly defined in regulations. Individual NFTs may be designated as securities if they look like investment contracts, or collectors’ items. Adoption is hampered by high costs and limited local platforms, although the burgeoning of the digital economy indicates room for growth.

Cryptocurrency Adoption Leads the Way

Cryptocurrency use in Saudi Arabia is picking up pace, influenced by the young demographic and the country’s digitalization. The Kingdom of Jordan is one of the highest crypto-owning nations in the Middle East with Bitcoin and Ethereum being some of the top choices. Social media and online forums are teaching newcomers and government blockchain projects are signs of increasing technology acceptance. Adoption is heavily influenced by culture and religion, especially following Sharia, and users tend to prefer compliant platforms.

Taxation Policies

Taxation of cryptocurrency in Saudi Arabia is not explicitly regulated, thus leaving a legal void. Income from trading in cryptos: Generally, income from trades of cryptos are treated capital gains, zakat (Islamic Wealth Tax) at 2.5% of net wealth. Companies could be liable for corporate income tax, though enforcement will depend on ambiguous regulations. Customs is likely to be the face of the law right now, with policy positions for crypto and VAT to be led by the GAZT once the market matures.

Blockchain Development in Saudi Arabia It is innovative because it is so ground-breaking.

Blockchain Sees Increasing Interest in Saudi Arabia which Seeks to Diversify Economy with Vision 2030 Saudi Arabia wants to diversify its economy and has big plans in store for blockchain technology. Projects such as blockchain supply chain solutions and digital identity systems foster innovation indirectly, which would then feed sideways support to the cryptocurrency space as blockchain becomes mainstream, such as blockchain-based supply chain solutions and digital identity systems on-boarding users on the blockchain while the direct support remains limited.

Cybersecurity Challenges

The risk of cybercrime in the Kingdom has increased as a result of cryptocurrency trading, with phishing attacks, wallet theft and exchange scams growing. The risks are heightened by dependence on global platforms. The gov is also updating cybersecurity legislation, but traders should still take precautions (think hardware wallets, 2FA).

Conclusion

Saudi Arabia is home to cautiously regulated crypto amid adoption and DeFi and NFT market interest. Though not legal tender, cryptocurrencies can be traded — a phenomenon that’s supported by international exchanges and a platform such as Rain. Regulatory legislations focus on AML and financial supervision, which may transition overtime as blockchain becomes widely adopted. DeFi and NFT markets meet regulatory, cultural headwinds but promise persists. As Saudi Arabia embarks on digital transformation and the government’s increasing interest in blockchain, the Kingdom is set to further capitalise on cryptocurrency if it manages to strike a balance between innovation and risk.