Is it legal to hold cryptocurrency in Saudi Arabia? The answer isn’t simple. You won’t find a clear yes or no. Instead, you’re caught in a gray zone where crypto is neither officially banned nor legally recognized. While millions of Saudis own digital assets, the government hasn’t laid out rules to protect them - or regulate them. This isn’t about stopping innovation. It’s about control.
What the Government Actually Says
In 2018, Saudi authorities declared virtual currencies illegal. A government committee said they weren’t licensed, weren’t regulated, and posed serious financial risks. The Ministry of Finance followed up in 2019 with a warning: don’t invest. Don’t trade. Don’t assume any legal protection. Banks were told: no crypto dealings unless SAMA (Saudi Central Bank) gives special permission. For regular people, that meant operating in the dark. But here’s the twist: a major religious authority issued a fatwa in 2023 stating that Bitcoin and other cryptocurrencies align with Sharia law. That wasn’t just a statement. It was a turning point. In a country where religious rulings shape financial behavior, this changed the conversation. Suddenly, holding crypto wasn’t automatically seen as haram. It became a personal financial choice - even if the state hadn’t caught up yet.How Many People Are Actually Holding Crypto?
Despite the warnings, crypto adoption is exploding. Around 4 million Saudis - roughly 11.4% of the population - own digital assets. That’s not a small group. That’s a market. In 2024, crypto transaction volumes hit $31 billion in just one year, up 153% from the year before. The entire market is valued at $23.1 billion and is projected to hit $45.9 billion by 2033. Saudi Arabia is now the second-largest crypto market in the Middle East, growing faster than anywhere else in the region. Why? Because over 63% of the population is under 30. Young people aren’t waiting for permission. They’re using apps, peer-to-peer exchanges, and offshore platforms to buy Bitcoin, Ethereum, and altcoins. The government can warn all it wants - but if your phone lets you buy crypto in seconds, and your friends are making money, you’re going to do it anyway.What’s Allowed? What’s Not?
Here’s the real split: retail crypto and institutional crypto are treated like two different worlds. For regular people: no official rules. No licensed exchanges. No consumer protections. If you lose your coins, there’s no recourse. If a platform gets hacked, you’re on your own. The government doesn’t recognize crypto as money, property, or legal tender. It’s just… there. For institutions? It’s a different story. SAMA and the Capital Market Authority (CMA) are actively encouraging blockchain technology. Goldman Sachs and Rothschild are setting up tokenization projects in Riyadh. They’re turning bonds, real estate, and trade finance into digital tokens on private blockchains. This isn’t about Bitcoin. It’s about efficiency. About speed. About reducing fraud in billion-dollar transactions. So yes - you can’t open a crypto account at Al Rajhi Bank. But yes - your pension fund might soon be invested in tokenized assets. The government isn’t against crypto. It just wants to control where and how it’s used.
Taxes: Do You Owe Anything?
No capital gains tax on personal crypto holdings. That’s right. If you buy Bitcoin today and sell it next year for a profit, you don’t pay tax on it. The government doesn’t track it. They don’t require reporting. There’s no form to fill out. But if you run a business that trades crypto? That’s different. Corporate income is taxed at 20%. You also pay 2.5% zakat - a religious tax on wealth. And if your business profits from crypto trading, you could be subject to 15% capital gains tax. The key is whether you’re an individual or a company. Individuals? No tax. Businesses? Pay up. The Anti-Money Laundering Law doesn’t mention crypto directly. But it defines “funds” broadly - including intangible assets obtained digitally. So if you’re moving large sums, you could still be flagged. The government doesn’t need to say “crypto is illegal” to stop you. They just need to say “funds are monitored.”The CBDC Factor: What’s Coming Next?
While regular crypto sits in legal limbo, Saudi Arabia is racing ahead with its own digital currency. The Saudi Central Bank is deep into testing a Central Bank Digital Currency (CBDC). They’re working with the UAE, China, Thailand, and Hong Kong on the mBridge project - a cross-border digital payment system using blockchain. This isn’t just tech. It’s strategy. By building its own digital currency, Saudi Arabia is preparing for a future where money moves instantly across borders, without relying on the U.S. dollar or traditional banking networks. And when that happens, private cryptocurrencies like Bitcoin could become even more irrelevant - or even more dangerous - in the eyes of regulators.
What Should You Do?
If you’re holding crypto in Saudi Arabia right now:- You’re not breaking any law - but you’re not protected by one either.
- Don’t use bank accounts to move crypto. That’s a red flag. Use peer-to-peer platforms instead.
- Keep records. Even if there’s no tax now, that could change tomorrow.
- Don’t market crypto as “approved” or “government-backed.” The Ministry of Finance has warned that using national symbols to promote crypto is illegal.
- Watch for new laws in 2025. Experts expect formal regulation to arrive soon - and it could mean licensing, reporting, or even restrictions.
The Big Picture
Saudi Arabia isn’t anti-crypto. It’s anti-uncontrolled-crypto. The government wants to be in charge of the future of money - not leave it to decentralized networks. That’s why they’re building their own digital currency while ignoring retail traders. They’re letting the market grow - but only until they’re ready to step in. Right now, holding crypto in Saudi Arabia is like driving a car with no license plate. No one’s stopping you. No one’s checking your insurance. But if you get pulled over, you’re on your own. The next 12 months will be critical. A new regulatory framework is coming. Whether it opens the door wider - or slams it shut - depends on how fast the government moves. Until then, the rules are simple: know the risks. Don’t assume safety. And stay alert.Is it legal to hold Bitcoin in Saudi Arabia?
Yes, holding Bitcoin or other cryptocurrencies is not explicitly illegal in Saudi Arabia. However, it is not legally recognized or regulated by any government authority. You can own it, but you have no legal protection if something goes wrong - like a platform collapse or a hack. The government has not banned personal ownership, but it also hasn’t given it any official status.
Can I buy crypto using my Saudi bank account?
No. Saudi banks are strictly prohibited from dealing with cryptocurrencies unless they receive special approval from SAMA - which has never been granted for retail customers. Using your bank account to transfer funds to crypto exchanges is risky and may trigger account freezes or investigations. Most users rely on peer-to-peer platforms or international exchanges with non-bank payment methods.
Do I have to pay tax on crypto profits in Saudi Arabia?
Individuals do not pay capital gains tax on crypto profits. There is no official tax reporting requirement for personal holdings. However, businesses that trade or profit from crypto are subject to corporate income tax (20%), 2.5% zakat, and potentially 15% capital gains tax. The key distinction is whether you’re an individual investor or running a business.
Is crypto trading banned in Saudi Arabia?
Retail crypto trading isn’t formally banned, but it’s not regulated either. The government has issued multiple warnings against it, and financial institutions are forbidden from facilitating it. You can still trade using offshore platforms, but you’re doing so without legal protection or oversight. The absence of a ban doesn’t mean safety - it means uncertainty.
Will Saudi Arabia legalize crypto in 2025?
Most experts believe yes. New legislation is expected in 2025 to bring crypto under a formal regulatory framework. The goal is to balance innovation with investor protection. This could mean licensing exchanges, requiring KYC/AML procedures, and possibly allowing regulated trading platforms. But it’s unlikely to mean full legalization as seen in some Western countries - more likely, controlled access under strict government oversight.
Why is Saudi Arabia promoting blockchain but restricting crypto?
Because blockchain and cryptocurrency are not the same thing. Blockchain is a secure, transparent ledger technology that can improve government services, banking, and trade. Crypto - like Bitcoin - is decentralized and outside state control. Saudi Arabia wants the efficiency of blockchain for its own systems (like tokenized bonds or CBDCs) but doesn’t want individuals using unregulated digital assets that could bypass financial oversight.
Can I use crypto to send money to family abroad?
Technically, yes - but it’s risky. While there’s no explicit law against it, cross-border crypto transfers may trigger anti-money laundering scrutiny. The government monitors large digital transactions under existing laws that define “funds” broadly. Using crypto for remittances could draw attention from authorities. Traditional channels remain safer and legally protected.
Are NFTs and altcoins treated differently than Bitcoin?
No. All cryptocurrencies and digital assets - including NFTs, altcoins, and stablecoins - fall under the same regulatory gray zone. The government doesn’t distinguish between them. They’re all treated as unregulated digital assets with no legal standing. Whether it’s Bitcoin or Solana, the rules (or lack thereof) are the same.
Molly Andrejko
February 8, 2026 AT 19:49Just want to say: if you're holding crypto in KSA, you're not alone. I know people who've been doing this for years, quietly, without fanfare. No bank involvement, no drama. Just P2P, cold wallets, and a lot of patience. The government might not recognize it, but millions of us are building something real anyway. Stay safe, stay smart.