Crypto War For Oil: Saudi Call For A Check. Is The Checkmate Coming?
RegulationBit News Today1 min read
Saudi Arabia has issued warnings against transactions and investments in virtual currencies. According to a statement issued Sunday, the standing committee under a royal order warned against virtual currency trading. Transactions in things like Bitcoins are "not approved as official currencies in the kingdom" and can lead to serious risks and negative consequences. Residents and citizens were advised to refrain from Forex activities promoting these currencies as authorized by officials.
Formed under a supreme decree, the standing committee is headed by the Capital Market Authority (CMA) and includes the Ministry of Interior, the Ministry of Media, the Ministry of Commerce and Investment, and the Saudi Arabian Monetary Authority (SAMA). The CMA's specialized department receives complaints, addresses them, and receives reports of violations regarding capital market law. The committee's work with relevant parties reveals a coordinated effort to prevent deceptive practices targeting the public in the kingdom. An advisory called out the proliferation of websites and social media ads promoting these digital currencies, highlighting their unauthorized status by official authorities.
In December 2017, Saudi Prince Al-Waleed bin Talal issued a stark warning about Bitcoin, saying it is just going to implode one day. Hashem Alhekail, SAMA’s deputy governor for banking operations, noted that Saudi Arabia aims to adopt and implement the "right" technologies until such currencies can be utilized.
After nearly crossing $20,000 in late December 2017, Bitcoin's price dropped to trade at $8,800. Central bankers and regulators around the world have issued warnings as cryptocurrencies experience sharp declines and heavy market volatility. World Bank chief Jim Yong Kim calls them “Ponzi schemes,” while Warren Buffet predicts they will "come to a bad end. The UAE's Securities and Commodities Authority cautioned investors against cryptocurrency fundraising, while Abu Dhabi Global Market's regulatory authority is considering a framework to supervise virtual currency exchanges.
