Is Holding Crypto Legal in Saudi Arabia? 2026 Rules, Risks, and Realities

When you buy Bitcoin or Ethereum in Saudi Arabia, you’re not breaking the law-but you’re also not protected by it. That’s the strange reality millions of Saudis live with every day. There’s no official ban on holding crypto. But there’s no legal recognition either. You can own it. You can trade it. But if something goes wrong, the government won’t step in to help you. No refunds. No compensation. No legal recourse.

What the Government Actually Says

In 2018, Saudi authorities declared virtual currencies illegal and unlicensed. The Ministry of Finance warned citizens against investing in Bitcoin or altcoins, calling them unregulated and risky. Banks were told: no crypto transactions. No deposits. No withdrawals. No exchanges. This wasn’t just a suggestion-it was a hard rule. And for years, that was the official stance.

But here’s the twist: the same government that banned crypto is quietly building the infrastructure to support it. The Saudi Central Bank (SAMA) is testing a digital currency with China, the UAE, Thailand, and Hong Kong. They’re running pilot programs for cross-border payments using blockchain. Major banks like Goldman Sachs and Rothschild are setting up tokenization platforms in Riyadh. These aren’t side projects. They’re billion-dollar initiatives backed by the state.

So what’s the difference? The government doesn’t care if you hold Bitcoin in your wallet. But it won’t let you use it to pay for groceries, buy a car, or settle a business invoice. It doesn’t recognize crypto as money. It sees it as a speculative asset-like gold or art. And that’s why it’s allowed to exist in the shadows.

Religious Approval Changed Everything

One of the biggest turning points came not from a government decree, but from a religious ruling. A top Islamic scholar issued a fatwa stating that using Bitcoin and other cryptocurrencies doesn’t violate Sharia law. Why does that matter? Because in Saudi Arabia, religion shapes finance. If a financial product is deemed haram, it dies. If it’s halal, it thrives-even if regulators are nervous.

That fatwa didn’t make crypto legal. But it removed a major psychological barrier. Suddenly, millions of young Saudis felt comfortable buying crypto. They weren’t breaking religious rules. They were just investing. And that’s when the market exploded.

The Crypto Market Is Booming-Despite the Rules

Saudi Arabia’s crypto market hit $23.1 billion in 2024. That’s more than any other country in the Middle East, except the UAE. And it’s growing fast. Transaction volumes jumped 153% in just one year. Around 4 million Saudis-11.4% of the population-own crypto. Most of them are under 30. That’s not a coincidence. Young people don’t trust traditional banks. They see crypto as freedom. A way to bypass state-controlled finance.

In 2025, the market is expected to generate nearly $500 million in revenue. That’s not from big institutions. It’s from regular people buying Ethereum on peer-to-peer apps, trading Solana on decentralized exchanges, and holding Bitcoin as a hedge against inflation.

The government doesn’t stop them. It just watches. And sometimes, it even encourages it-through indirect means.

What You Can and Can’t Do

Here’s the real breakdown:

• You can: Buy, hold, and sell crypto using international exchanges like Binance, Kraken, or Bybit. You can store it in a hardware wallet. You can transfer it to friends or family. You can use peer-to-peer platforms like Paxful or LocalBitcoins.
• You cannot: Use crypto to pay for goods or services in Saudi Arabia. No store, restaurant, or government office accepts it. You can’t open a crypto account at any local bank. You can’t trade crypto through a licensed Saudi financial firm. And you can’t advertise crypto services using Saudi national symbols.

Banks are strictly forbidden from handling crypto unless they get special approval from SAMA-and no bank has received that approval for retail customers. That’s why most Saudis use offshore platforms. They wire money from their Saudi bank account to a foreign exchange. Then they buy crypto. Then they hold it. Then they sell it when the price moves.

It’s not illegal. But it’s not clean. You’re operating in a gray zone.

Taxes: No Capital Gains, But Watch Out

Good news: Saudi Arabia doesn’t tax personal crypto gains. If you bought Bitcoin for $10,000 and sold it for $30,000, you keep the $20,000 profit. No tax. No reporting. No paperwork.

But if you run a business that trades crypto? That’s different. You’ll pay 15% capital gains tax. Plus, corporate income tax at 20%. And if you’re a Muslim business owner, you’ll also pay 2.5% zakat on your net worth-including crypto holdings.

The Anti-Money Laundering Law doesn’t mention crypto by name. But it defines “funds” as any asset with value, including digital ones. So if you’re moving large amounts of crypto and the authorities suspect you’re laundering money, they can investigate. They’ve done it before. And they will do it again.

What’s Coming in 2026?

New crypto regulations are expected in 2025. They’re not going to ban crypto. They’re going to control it.

The government is working on a licensing system for crypto exchanges operating in Saudi Arabia. They want to force platforms to follow KYC and AML rules. They want to track transactions. They want to protect investors. They want to make sure crypto doesn’t become a tool for terror financing or fraud.

That’s not a bad thing. But it’s not a free-for-all either. Once licensing starts, only approved platforms will be allowed to operate. Unlicensed apps might get blocked. Wallets might be flagged. Your funds could be frozen if you’re using a platform the government doesn’t trust.

The message is clear: we won’t stop you from owning crypto. But we will make sure you do it on our terms.

How Saudis Are Really Using Crypto

Most people don’t use crypto to buy things. They use it to save.

The Saudi riyal is pegged to the U.S. dollar. Inflation is low. But the cost of living is rising. Young Saudis see crypto as a way to protect their savings from future devaluation. Some buy Bitcoin as digital gold. Others trade altcoins for quick profits. A growing number are staking Ethereum or Solana to earn passive income.

They’re not waiting for the government to approve it. They’re building their own financial system-outside the banks, outside the rules, but still within the law.

Is It Safe?

Safe? Not really. But it’s not dangerous either.

There’s no fraud protection. No insurance. No FDIC-style safety net. If an exchange gets hacked, you lose everything. If the government cracks down, your account could be frozen. If you send crypto to the wrong address, it’s gone forever.

But millions are doing it anyway. Why? Because the alternative-keeping money in a Saudi bank-isn’t much better. Interest rates are near zero. Inflation is creeping up. And the government controls everything.

Crypto gives people choice. And in a country where choice is limited, that’s powerful.

What You Should Do Now

If you’re holding crypto in Saudi Arabia:

1. Use a non-custodial wallet. Don’t leave your crypto on an exchange. Take control of your keys.
2. Don’t use Saudi banks to fund crypto purchases. Use peer-to-peer platforms instead. They’re safer and more private.
3. Keep records of all transactions. Even though there’s no tax now, that could change.
4. Don’t advertise crypto services. Don’t use Saudi national symbols. You could get fined or worse.
5. Stay updated. New rules are coming. When they do, you’ll need to know what’s allowed.

The future of crypto in Saudi Arabia isn’t about bans. It’s about control. The government doesn’t want to stop you. It wants to own the system you’re using. And that’s why the next few years will change everything.