Saudi Arabian authorities are warning against cryptocurrency trading in the Kingdom. The government via a special committee recently issued a statement stressing that Bitcoin and cryptocurrency trading is still illegal in the country. The committee came out with the clarification in response to an increase in the number of websites and social media platforms promoting the trade.

The standing committee

The standing committee is headed by the country’s Capital Market Authority. The committee is comprised of representatives from the Ministry of Information, the Ministry of Interior and the Saudi Arabian Monetary Agency (SAMA). The institutions issued a joint statement saying the claims being propagated by these websites and social media platforms are not correct. Many of these websites have claimed that they have the backing of the authorities.

Additionally, the committee has warned the general public of the risks that come with investing in cryptocurrencies. In addition to the volatility of the market, the committee is also warning citizens of potential scams, sending cash to unknown people as well as the prevalence of fictitious contracts.

The use of cryptocurrencies for illicit activities

The committee has also warned that cryptocurrency activities being promoted are outside the scope of the government. Additionally, the committee said that cryptocurrencies are being used to execute criminal activities in the country.

The standing committee has announced that it is working with the relevant authorities to reduce cryptocurrency marketing activities. The committee indicated that apart from cryptocurrencies, they are also targeting unregulated forex trading in the country.

The standing committee was formed by the supreme decree headed by the CMA. The committee is working with several government agencies and regulatory bodies to curb the marketing of investment opportunities. In addition the committee says there are several government bodies attached to the finance and investment sector ready to offer any advice to traders who may not be well-informed.