Introduction
Saudi Arabia is a country that values innovation and technological advancement. As such, it has been keeping a close eye on cryptocurrencies, the digital or virtual currencies used for secure peer-to-peer electronic transactions without the need for intermediaries like banks. In recent years, Saudi Arabia has taken steps to regulate and integrate cryptocurrencies into its economy.
This guide will provide a comprehensive overview of how to purchase cryptocurrency in Saudi Arabia, with a focus on Bitcoin and Ethereum, as well as other popular digital currencies. We’ll discuss the legal and regulatory framework, exchange options, wallets, security tips, and more.
Legal and Regulatory Framework
Before we dive into the practical aspects of purchasing cryptocurrency in Saudi Arabia, it’s important to understand the legal and regulatory landscape. In 2018, the Saudi Arabian Monetary Authority (SAMA) issued a statement that it was monitoring cryptocurrencies closely and considering the potential for their use in the kingdom. However, SAMA warned against engaging in illegal activities related to cryptocurrency trading.
In February 2021, the Saudi Arabian central bank announced that it was allowing banks to offer cryptocurrency-related services, such as buying, selling, and holding digital currencies. This marked a significant shift in the kingdom’s approach to cryptocurrencies, as previously, there were no specific regulations governing their use or trade.
However, it’s important to note that while banks are now allowed to offer cryptocurrency-related services, individual investors and traders may still face some restrictions. For example, cryptocurrency transactions must be made through licensed banks in the country, and individuals must provide proof of identity before engaging in any trading activities.
Exchange Options
Now that we have a basic understanding of the legal and regulatory landscape, let’s discuss exchange options for purchasing cryptocurrency in Saudi Arabia. There are several exchanges available, including local and international options.
Local Exchanges
The Saudi Arabian Stock Exchange (TADAWUL) launched its own cryptocurrency exchange in 2019. The TADAWUL crypto trading platform, called TAZEEME, allows users to buy and sell a variety of cryptocurrencies, including Bitcoin, Ethereum, and Ripple. However, it’s worth noting that the platform only supports trading in Saudi riyals (SAR) and does not accept other currencies.
Another local exchange option is BitOasis, which was launched in Saudi Arabia in 2018. BitOasis is a UAE-based cryptocurrency exchange that operates in several countries, including