Saudi Crypto Regulation Development and Future: What’s Legal, What’s Coming in 2025
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For years, Saudi Arabia told its citizens: don’t touch cryptocurrency. In 2018, a government committee called virtual currencies illegal. Banks were barred. Exchanges were shut down. But today, over 4 million Saudis own crypto. Binance, Coinbase, and Kraken are quietly used by millions. How did this happen? The answer isn’t simple. It’s not legal. It’s not illegal. It’s something in between - and that’s exactly how the Kingdom wants it.
What’s Allowed and What’s Not
Saudi Arabia doesn’t have a law that says you can’t own Bitcoin. But it also doesn’t say you can. That’s the gray zone. The Saudi Central Bank (SAMA) and the Capital Market Authority (CMA) haven’t issued clear rules for retail traders. So while you can buy crypto on international platforms like Coinbase, you’re doing it at your own risk. SAMA regularly warns the public about scams, volatility, and the lack of legal protection. But they don’t block access. No firewall. No fines. Just silence - and caution.Here’s what’s clearly forbidden: banks can’t trade crypto without SAMA’s written approval. And getting that approval? It takes 6 to 9 months. No bank in Saudi Arabia has gotten it yet. That means you can’t buy crypto with your Al Rajhi or Riyad Bank account. No direct deposits. No crypto ATMs. No local exchanges. All trading happens overseas - and that’s the only way it’s possible right now.
But here’s the twist: mining is legal. In fact, Saudi Arabia now accounts for 4% of global crypto mining - up from less than 1% in 2020. Why? Because the government sees it as infrastructure. Mining rigs run on cheap solar power in NEOM, Saudi’s futuristic city project. The carbon footprint dropped 35% since 2022 thanks to renewable energy integration. That’s not just allowed - it’s encouraged. The same goes for blockchain development. The Ministry of Communications and Information Technology spent SAR 1.2 billion ($320 million) in 2025 on blockchain projects. That’s real money. Real support.
Religious Approval Changed Everything
One of the biggest barriers to crypto adoption in Saudi Arabia wasn’t technology - it was religion. Many Muslims questioned whether Bitcoin violated Sharia law. Then, in early 2024, a senior religious authority issued a fatwa: Bitcoin and other cryptocurrencies are permissible under Islamic finance principles, as long as they’re used for legitimate trade and not speculation or gambling. That single statement removed a major psychological block. Suddenly, crypto wasn’t haram. It was halal. And that opened the door.The fatwa didn’t make crypto legal. But it made it acceptable. And when something becomes culturally acceptable in Saudi Arabia, the government follows. That’s how Vision 2030 works - cultural shifts drive policy. The fact that 63% of the population is under 30 means young Saudis are already using crypto like they use TikTok. They don’t wait for permission. They just do it. And the government knows it.
Why the Government is Playing Both Sides
Saudi Arabia is running two parallel tracks. One track is strict control over retail crypto. The other is aggressive investment in blockchain technology. This isn’t confusion. It’s strategy.On the retail side, the government keeps crypto out of the formal banking system. No banks. No exchanges. No custody services. That protects the Riyal and prevents capital flight. But on the institutional side, they’re building the future. Saudi Arabia is part of the mBridge project - a cross-border digital currency initiative with China, the UAE, Thailand, and Hong Kong. They’re testing how central bank digital currencies (CBDCs) can replace SWIFT for international trade. They’ve already launched Project Aber with the UAE - a joint CBDC pilot that’s been running since 2019.
And then there’s Nuqtah - Saudi Arabia’s first regulated NFT platform. Approved in late 2024, it lets artists and businesses tokenize digital art under government oversight. No wild speculation. No anonymity. Just verified ownership on a blockchain. This isn’t crypto for gambling. This is crypto for business. And that’s what the government wants.
What’s Coming in 2025
By the end of 2025, everything will change. Two major developments are confirmed:- The Capital Market Authority (CMA) will release formal crypto asset regulations in Q3 2025. These will define what counts as a crypto asset, who can operate exchanges, and what AML/KYC rules apply.
- SAMA will launch a pilot for a domestic CBDC in Q4 2025. This won’t replace the Riyal - it will sit alongside it, used for government payments, payroll, and cross-border trade.
Expect a licensing system for crypto service providers. Think of it like a broker-dealer license - but for digital assets. Companies that want to operate in Saudi Arabia will need to register, prove they follow Sharia compliance, and show they have strong anti-fraud systems. Retail users won’t be banned. But they’ll be funneled through approved platforms. No more anonymous trading on offshore exchanges. Everything will be traceable.
And taxes? They’re already in place. Individuals pay zero capital gains tax on crypto. That’s a huge incentive. But businesses? They pay 15% capital gains tax, 20% corporate income tax, and 2.5% zakat. That’s not a punishment - it’s a signal. The government wants you to hold crypto as an individual investor. Not as a company. That keeps the market stable and prevents institutional manipulation.
The Market Is Already Here
Numbers don’t lie. In 2024, Saudi Arabia’s crypto market was worth $23.1 billion. By 2033, it’s projected to hit $45.9 billion. That’s a 7.9% annual growth rate - faster than the global average. Over 7.4 million Saudis will be using crypto by 2025. Transaction volume jumped 153% between July 2023 and June 2024 - more than double the regional average.And here’s something surprising: Saudis prefer altcoins over Bitcoin. Ethereum, Solana, and Dogecoin are more popular than BTC. Why? Because younger users see crypto not as money, but as tech. They’re into NFTs, DeFi, and gaming tokens. They’re not saving for retirement. They’re building portfolios. And the government knows this. That’s why they’re focusing on regulated innovation - not prohibition.
What This Means for You
If you’re a Saudi citizen: you can keep using Coinbase or Binance. But don’t expect legal protection. Don’t assume your funds are safe if a platform crashes. Don’t deposit large sums. Treat crypto like stocks you bought overseas - risky, but not illegal.If you’re a business: wait for the Q3 2025 regulations. Don’t try to launch a local exchange now. You’ll get shut down. But if you’re building blockchain tools for government contracts, logistics, or supply chains - start now. The money is flowing. The Ministry of Communications is actively hiring blockchain engineers. The opportunities are real.
If you’re an investor: Saudi crypto isn’t about hype. It’s about infrastructure. The country isn’t trying to become the next Switzerland. It’s trying to become the next Singapore - but with Islamic finance rules. The real value isn’t in Bitcoin. It’s in the digital Riyal, the CBDC, and the blockchain networks that will power Saudi’s next decade.
What’s Next?
The future of crypto in Saudi Arabia won’t be wild and free. It won’t be banned. It will be controlled - but smartly. The government is using crypto’s energy to fuel Vision 2030, not undermine it. By 2026, you’ll be able to pay your electricity bill with a regulated digital token. You’ll be able to buy property using an NFT deed. You’ll be able to trade stocks on a blockchain-powered exchange - all under SAMA’s watchful eye.This isn’t the end of crypto in Saudi Arabia. It’s the beginning of its second chapter. And this time, it’s not about rebellion. It’s about building.
Is it legal to own Bitcoin in Saudi Arabia?
Yes, owning Bitcoin or other cryptocurrencies is not explicitly illegal in Saudi Arabia. However, there is no formal legal protection for individuals. The government does not recognize crypto as legal tender, and banks are prohibited from handling crypto transactions without SAMA approval - which hasn’t been granted yet. Trading happens on international platforms like Coinbase and Binance, but users do so at their own risk.
Can I use my Saudi bank account to buy crypto?
No. Saudi banks, including Al Rajhi, Riyad Bank, and National Commercial Bank, are banned from processing cryptocurrency transactions. You cannot deposit or withdraw crypto using your local bank account. To buy crypto, you must use international exchanges and transfer funds via third-party payment methods, which may carry additional fees or risks.
Is crypto mining allowed in Saudi Arabia?
Yes, crypto mining is legal and actively encouraged. Saudi Arabia has become one of the top 10 global mining hubs, thanks to low-cost renewable energy in projects like NEOM. Mining operations must comply with environmental and energy regulations, but they are not restricted. The government sees mining as part of its digital infrastructure strategy under Vision 2030.
Do I have to pay taxes on crypto in Saudi Arabia?
Individuals do not pay capital gains tax on cryptocurrency profits. However, businesses involved in crypto trading or mining must pay 15% capital gains tax, 20% corporate income tax, and 2.5% zakat (Islamic wealth tax). This tax structure is designed to encourage individual investment while regulating commercial activity.
When will Saudi Arabia release official crypto regulations?
The Capital Market Authority (CMA) is expected to release formal crypto asset regulations in Q3 2025. These rules will define licensing for exchanges, custodial services, and trading platforms. A domestic central bank digital currency (CBDC) pilot is also expected to launch in Q4 2025. These developments will bring clarity to the current gray area.
Is Bitcoin considered halal in Saudi Arabia?
Yes. A high-ranking Saudi religious authority issued a fatwa in early 2024 confirming that Bitcoin and other cryptocurrencies are permissible under Islamic law, provided they are used for legitimate trade and not speculation or gambling. This religious endorsement has significantly increased public acceptance of crypto in the Kingdom.
What’s the difference between crypto and blockchain in Saudi Arabia?
Crypto (like Bitcoin) is treated cautiously - allowed for individuals but not integrated into the banking system. Blockchain, however, is a national priority. The government is investing billions in blockchain for supply chains, land registries, digital IDs, and cross-border payments. While crypto is a financial tool, blockchain is seen as critical infrastructure for Vision 2030.
Can I start a crypto exchange in Saudi Arabia right now?
No. There are no legal frameworks for local crypto exchanges yet. Attempting to operate one now would likely result in shutdowns and penalties. The CMA plans to introduce licensing rules in Q3 2025. Until then, only international platforms serve Saudi users. Businesses should wait for official guidelines before entering the market.
Bhavna Suri
October 31, 2025 AT 18:21This is wild. Saudi Arabia letting people buy crypto but not letting banks touch it? That’s like letting kids eat candy but banning grocery stores from selling it.
Helen Hardman
November 1, 2025 AT 12:42Okay but can we talk about how insane it is that mining is not just legal but encouraged? Solar-powered rigs in NEOM? That’s the future right there. I’ve seen so many countries panic about crypto, but Saudi’s playing 4D chess-letting people trade on the side while quietly building the infrastructure to own the next decade. The fatwa was genius too. No amount of regulation could’ve shifted culture like that. It’s not about banning tech-it’s about directing it. And honestly? More governments should copy this. Not the secrecy, but the strategy. Let people experiment, then regulate the winners. Smart.
Elizabeth Melendez
November 2, 2025 AT 08:21OMG YES I’ve been saying this for years!! The fact that individuals don’t pay capital gains tax but businesses do? That’s not a loophole-that’s a masterclass in policy design. They’re basically saying, ‘Go ahead, invest your spare cash, don’t risk your life savings, but if you wanna go big? Here’s the rules.’ And the NFT platform? So clean. No anonymity, no scams, just verified art. I wish the US was this thoughtful. Also, altcoins over BTC? Of course! Gen Z doesn’t care about ‘digital gold,’ they care about DeFi, gaming tokens, and NFTs that let them own their memes. This isn’t crypto as money-it’s crypto as culture. And Saudi gets it. 💪
Phil Higgins
November 3, 2025 AT 07:14The real insight here isn’t about regulation. It’s about the relationship between cultural acceptance and institutional change. The fatwa didn’t legalize crypto-it legitimized it in the public consciousness. And in a society where religious authority carries weight, that’s more powerful than any law. The government didn’t lead this change; it followed it. That’s not weakness-it’s political wisdom. Most states try to control innovation from the top. Saudi Arabia let it bubble up, then shaped it. That’s not crypto policy. That’s statecraft.
Genevieve Rachal
November 3, 2025 AT 20:59Let me guess-this is the same Saudi Arabia that banned Netflix for ‘immoral content’? Now they’re okay with crypto because it’s ‘not gambling’? That’s not logic, that’s hypocrisy. And don’t act like this is some brilliant strategy. They’re just scared of losing control. If they really trusted blockchain, they’d let banks participate. But they don’t. They’re playing both sides because they don’t know what they’re doing. And the ‘halal crypto’ thing? That’s just marketing dressed in religious language. Don’t be fooled.
Eli PINEDA
November 3, 2025 AT 22:28wait so if i mine crypto in saudi its legal but if i buy it on binance its ‘at my own risk’?? like… what does that even mean?? does that mean if binance gets hacked i cant sue anyone?? and why is mining encouraged but buying not?? this feels like a trap. also why do they care about altcoins?? is it because btc is too ‘western’??
Debby Ananda
November 5, 2025 AT 02:28So… they’re basically turning Saudi into the Dubai of Web3 but with more camels and less neon? 😏 I’m lowkey impressed. The CBDC pilot? The NFT platform? The Sharia-compliant crypto? This is peak geopolitical gaming. They’re not just adopting tech-they’re branding it. ‘Islamic fintech’ is going to be the next big thing. And honestly? I’m here for it. 🌙🚀
Vicki Fletcher
November 5, 2025 AT 22:39Wait-so individuals pay zero tax, but businesses pay 15% capital gains, 20% corporate, AND 2.5% zakat? That’s… actually brilliant. It’s like they’re saying, ‘We want you to invest, but not to build a crypto empire.’ And the fact that they’re using renewable energy for mining? That’s the kind of sustainability-forward thinking the West should’ve had five years ago. Also, the ‘no banks, no problem’ approach? Genius. They’re avoiding systemic risk while still letting innovation thrive. I’m not usually a fan of centralized control, but this? This is controlled evolution. Respect.
Nadiya Edwards
November 6, 2025 AT 10:22Of course they’re doing this. It’s all part of the plan. They know the West is terrified of losing financial dominance, so they’re quietly building a parallel system-crypto under Islamic law, CBDCs tied to oil trade, blockchain for supply chains. This isn’t progress. It’s a power play. And the fatwa? A distraction. They don’t care about religion-they care about control. And the fact that they’re letting millions trade anonymously? That’s not tolerance. That’s preparing for a financial coup. The dollar is on its way out, and Saudi’s building the new currency system. You’re being played.
Ron Cassel
November 6, 2025 AT 23:18Don’t believe the hype. This is all a front. The Saudis are using crypto to launder money for the royal family. The ‘mining’ is just a cover for energy theft. The ‘fatwa’? Written by a guy who got a free trip to Dubai. And the CBDC? That’s how they’ll track every citizen’s spending. You think they care about Vision 2030? They care about surveillance. The moment you use their regulated exchange, you’re handing over your data to a regime that locks people up for tweeting wrong things. Crypto isn’t freedom here-it’s a trap with better UX.
Malinda Black
November 7, 2025 AT 11:18It’s so refreshing to see a country handle this with nuance instead of panic. Most places either ban crypto or throw open the floodgates. Saudi’s doing the hard thing: letting people explore while building guardrails. The fact that they’re encouraging individual investment but restricting commercial activity? That’s protecting people from themselves. And the religious approval? That’s cultural intelligence. You can’t force change-you have to meet people where they are. This isn’t just smart policy. It’s human policy.
ISAH Isah
November 9, 2025 AT 02:39bob marley
November 10, 2025 AT 00:31Oh wow, so now crypto’s halal? Next they’ll say alcohol is halal if you drink it in a ‘spiritual’ way. And ‘regulated NFTs’? That’s like saying ‘I’m going to let you paint on my wall but only with these five colors.’ This isn’t freedom-it’s a gilded cage. And the tax thing? Of course individuals don’t pay tax. That’s how you lure in the suckers. Meanwhile, the real players-the ones with capital-are getting squeezed. Classic.
Jeremy Jaramillo
November 10, 2025 AT 22:40I’ve been watching this unfold for years. What’s impressive isn’t the tech-it’s the patience. Most governments rush to regulate. Saudi Arabia waited. Letted culture shift. Letted people find their own way. Then stepped in with structure, not restriction. The CBDC isn’t about replacing the Riyal-it’s about giving the people a trusted digital option. And the fact that they’re using blockchain for land registries and supply chains? That’s where the real value is. Crypto isn’t the future here. The infrastructure built on it is. And that’s worth paying attention to.
Sammy Krigs
November 12, 2025 AT 20:13so wait… i can mine but not buy?? like… how do i even get the coins to mine?? do i just magically get them?? and why is everyone talking about altcoins like its normal?? i thought btc was the only one?? also why no one talks about the fact that they use solar power?? that’s actually cool??
naveen kumar
November 13, 2025 AT 21:10Wesley Grimm
November 15, 2025 AT 01:30Let’s not romanticize this. The ‘gray zone’ is just a way to avoid accountability. No legal protection? No recourse if you get scammed? That’s not innovation-that’s negligence. And the ‘encouraged mining’? It’s a carbon offset scam wrapped in green tech. They’re using renewable energy because it’s cheaper, not because they care. And the CBDC? That’s the end of financial privacy. This isn’t a model. It’s a warning.
Kymberley Sant
November 16, 2025 AT 13:14altcoins over btc?? ofc they are!! btc is for old people who think money is a store of value. saudi youth want to play with tokens, earn nfts, stake in defi-this is web3 culture, not finance. and the fact that they’re not taxing individuals? genius. lets people play without fear. the biz tax? that’s to stop crypto bros from turning it into a hedge fund. and the fatwa?? that was the key. religion > regulation. always. they didn’t need laws-they needed a cultural reset. and they got it.
Matthew Affrunti
November 17, 2025 AT 05:31This is the most mature crypto policy I’ve seen in a decade. No bans. No panic. No ‘crypto is evil’ rants. Just clear boundaries: you can hold, you can mine, you can’t bank with it, and if you’re a business? Here’s the playbook. The tax structure? Perfect. Encourages participation without encouraging greed. The NFT platform? Clean, regulated, no anonymity. And the CBDC? Not replacing the Riyal-enhancing it. This isn’t crypto in Saudi Arabia. This is Saudi Arabia building the future of finance. And honestly? The rest of the world should be taking notes.
Helen Hardman
November 18, 2025 AT 02:39Just read the comment from @876 and I have to say-no, this isn’t a trap. It’s evolution. If you think the government is controlling everything, you’re missing the point. They’re not forcing people to use crypto. They’re just not stopping them. And that’s the difference. Look at how many countries are still debating whether crypto should even exist. Saudi Arabia already moved past that. They’re not scared of innovation-they’re shaping it. And the fact that they’re letting individuals benefit without taxing them? That’s not manipulation. That’s trust. And trust is the most powerful currency of all.