The Middle East is a particularly tough nut to crack for cryptocurrencies looking to gain worldwide adoption. While a handful of nations in the region are warming up to cryptocurrencies, Saudi Arabia is remaining firmly in the anti-crypto party with its latest warnings against digital currencies. Late last week, the Saudi Monetary Authority (SAMA) issued yet another public warning against cryptocurrencies, and named a particular cryptocurrency that is using the nation’s own currency in its name.
The Crypto Riyal Isn’t Worthy of the Name
Saudi Arabia declared Bitcoin trading illegal back in August 2018, and it’s not getting any closer to lifting the ban on the activity. In a bid to skirt around the ban, a project called CryptoRiyal has popped up in the nation, promising to be the digital Riyal that will link AI and big data to blockchain technology, creating a currency of the future. The SAMA has warned against trading this cryptocurrency when its ICO goes live at the beginning of September, saying that the government will never recognize this token. This token has made the crypto climate in Saudi Arabia less palatable than ever before, meaning we could see further bans and restrictions come in to place over the next few weeks.
Saudis Facing Total Crypto Lockdown
As is true for a bank customers in a number of countries around the world, Saudi Arabian citizens are having all transactions to crypto exchanges blocked. This move comes as no surprise following the law passed against crypto trading last year, meaning it’s a rather substantiated ban. Now, when comparing this ban on transfers to crypto exchanges with the bans we’re seeing from Wells Fargo and Santander, it makes you wonder whether other jurisdictions could be about to roll out the complete ban on crypto trading. Fortunately, Saudis can still trade Bitcoin and other cryptos in peer-to-peer meetups or by leaving the country and heading to Bitcoin ATMs in other countries.
Bahrain Breaking Ground
It appears to be only Saudi Arabia that has an issue with crypto trading, as earlier this year Bahrain saw the first regulated crypto exchange launch. BitOasis was crowned as the first crypto exchange in the Middle East as it scooped up a license from the Bahrain Central Bank. The Central Bank’s new crypto regulations have made it tough for exchanged to achieve regulation, but those willing to put in the effort can achieve regulation – just as BitOasis proved.
The crypto climate in Saudi Arabia isn’t looking healthy at all, and if the CryptoRiyal project continues to stir up trouble we could see further restrictions come into place. While Saudi Arabia is exploring government backed and controlled cryptocurrency projects with The United Arab Emirates, it’s yet to allow the general public play with this shiny new toy.
