Per a statement issued on Sunday, the Standing Committee asked its citizens not to venture into cryptocurrency trading due to “negative consequences and high risks on traders as they are out of government supervision.”
The Committee further stated
“The committee assured that virtual currency including, for example but not limited to, the Bitcoins are illegal in the kingdom and no parties or individuals are licensed for such practices.”
The statement, however, did not clarify as to what sort of punishment an individual may be subject to, if found trading cryptocurrencies.
Five of the Middle Eastern country’s watchdogs joined together to form The Standing Committee for Awareness on Dealing in Unauthorized Securities Activities in the Foreign Exchange Market. Some of the notable organizations involved in the formation of the Standing Committee include Capital Market Authority (CMA) and the Saudi Arabian Monetary Authority (SAMA), the country’s de facto central bank.
The Standing Committee has mandate to act on unauthorized securities. Additionally, it can notify appropriate agencies of any cryptocurrency activities, with a motive of keeping them away from public exposure.
In December 2017 Saudi Prince Al-Waleed bin Talal said Bitcoin is “just going to implode one day.”
The prince also compared Bitcoin to the energy company Enron, which fell off the cliff following the discovery of colossal accounting fraud.