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Saudi Ministry of Finance Warns of Suspicious Virtual Currency

Saudi Ministry of Finance Warns of Suspicious Virtual Currency

Wednesday, 21 August, 2019 - 13:00
Riyadh- Shujaa al-Bogmi
The Saudi Ministry of Finance has warned traders in the nation against the use of virtual currencies, saying that they are not legally recognized in the kingdom and are outside the scope of the regulatory framework.

One of the main concerns the ministry has is that virtual currencies are usually associated with fraudulent activities and attract illegal and illegitimate financial activities, in addition to their high-investment risks related to frequent price fluctuations.

The MOF said: “Virtual currencies have appeared claiming their relationship to financing of projects, activities or investment in KSA and using the name of the national currency of KSA (Saudi Riyal), or KSA’s emblem (two crossed swords with a palm tree) for misleading marketing of its activities such as (Crypto Riyal) or other virtual currencies.”

MOF warns that any use of the KSA name, national currency, or emblem by any entity for virtual or digital currencies marketing will be subject to legal actions by the competent authorities in the Kingdom.

Further, the Capital Markets Authority (CMA) of Saudi Arabia warned investors of dealing with digital currencies – it affirmed that investment, participation, and speculation in initial offerings of digital currencies lies on high risks.

CMA noted that investors might be subject to deception and huge losses in the capital due to the limited information available to investors, lack of the authority’s supervision over these investments and the difficulty of understanding them by individuals.

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