- Saudi Arabia maintains a restrictive stance on cryptocurrencies.
- No legal tender recognition has been granted.
- The focus is on a central bank digital currency.
The government of Saudi Arabia continues its cautious approach towards cryptocurrency, confirming its restrictive stance in 2025, while pursuing blockchain initiatives with the UAE.
Saudi Arabia’s persistent caution with cryptocurrencies affects potential market expansion and highlights a preference for controlled financial innovation.
Saudi Arabia’s crypto regulations remain stringent, with the Saudi Central Bank (SAMA) not recognizing cryptocurrencies as legal tender. Instead, the nation focuses on its digital currency project in partnership with the UAE, known as “Aber.” The government has implemented restrictions on cryptocurrency trading and stressed the lack of investor protection. “The Saudi Central Bank has not moved toward recognizing cryptocurrencies as legal tender and maintains a complete ban on their use in the banking system.” – Dr. Fahad Al-Tamimi, Financial Analyst, Saudi Economic Council. Saudi officials continue to emphasize integrating blockchain technology in the financial sector, part of their broader Vision 2030 initiative.
The restrictions affect individuals and industries seeking more crypto-friendly environments, highlighting potential regulatory barriers. Financially, Saudi Arabia emphasizes protecting its economy, choosing a cautious path in the rapidly evolving digital asset space. The implications include limited crypto market growth within the country, discouraging potential investors and entrepreneurs. Saudi Arabia’s focus on its CBDC development suggests regulatory frameworks centering around national digital currencies may arise.
Internationally, Saudi Arabia’s approach mirrors that of regional peers such as Kuwait, reinforcing a conservative stance. Historical trends indicate a consistent policy that prioritizes national financial control, while digital currency developments could spur technological advancements. This careful approach aligns with Saudi Arabia’s broader strategic objectives, possibly influencing regional regulatory landscapes.
