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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 ordered to block any crypto-related transactions. Trading on Binance or Coinbase? Technically, it was a gray zone-no one got arrested, but no one was officially allowed to do it either. Fast forward to 2025, and the story has flipped. Crypto isn’t legal tender, but it’s not banned either. And the real action isn’t happening on retail exchanges-it’s happening in boardrooms, government labs, and smart city projects.
The Two Faces of Saudi Crypto Policy
Saudi Arabia doesn’t have a single crypto law. That’s the first thing to understand. Instead, it operates with two parallel tracks: one for people, one for institutions. For ordinary Saudis, owning Bitcoin or Ethereum isn’t illegal, but it’s not protected either. You can buy crypto on international platforms like Coinbase or Kraken. Thousands do. About 4 million Saudis-11.4% of the population-hold digital assets, according to CoinLaw’s 2025 report. But if your wallet gets hacked? No government insurance. If you get scammed? No official recourse.
Meanwhile, the government is pouring billions into blockchain. The Saudi Central Bank (SAMA) and the Capital Market Authority (CMA) are leading the charge. They’re not just watching-they’re building. The mBridge project, a cross-border digital currency initiative with China, the UAE, Thailand, and Hong Kong, is live. Project Aber, the joint Saudi-UAE CBDC pilot from 2019, is still running. And in late 2024, Saudi Arabia launched its first regulated NFT platform: Nuqtah. This isn’t experimentation. It’s infrastructure development.
Why the Contradiction?
Why allow citizens to trade crypto while blocking banks from touching it? The answer lies in control. The government doesn’t want retail speculation destabilizing the financial system. But it does want blockchain technology to drive economic growth under Vision 2030. That’s why mining got a green light-with conditions. As of 2025, crypto mining is legal if it uses renewable energy. The NEOM smart city project now hosts one of the world’s most efficient mining operations, cutting carbon emissions by 35% since regulations tightened. That’s not just compliance-it’s branding.
Religious approval also helped. In 2024, a senior Saudi cleric issued a fatwa stating Bitcoin and other cryptocurrencies are Sharia-compliant if used as assets, not gambling tools. That removed a major psychological barrier for millions of conservative Muslims. Suddenly, crypto wasn’t haram-it was a digital asset class, like gold or real estate.
Who’s Making Money? And How?
The numbers tell a clear story. The Saudi crypto market was worth $23.1 billion in 2024. By 2033, it’s projected to hit $45.9 billion. That’s a 7.9% annual growth rate-faster than the global average. But here’s the twist: most of that growth isn’t from individual traders. It’s from institutions. Transaction volume jumped 153% between July 2023 and June 2024, hitting over $31 billion. That’s not mom-and-pop investing. That’s hedge funds, sovereign wealth funds, and private equity firms using blockchain for settlement, tokenized assets, and supply chain tracking.
Taxes reflect this divide. Individuals pay zero capital gains tax on crypto profits. But if you’re a business? You’re hit with 15% capital gains tax, 20% corporate income tax, and 2.5% zakat. That’s not a penalty-it’s a filter. It pushes crypto activity away from retail speculation and toward institutional, long-term use cases.
What’s Coming in 2025? The Big Regulatory Shift
Everyone’s waiting for the other shoe to drop. And it’s coming. According to a leaked internal document from the Capital Market Authority, new crypto asset regulations will be issued in Q3 2025. This won’t be a vague warning. It’ll be a licensing framework. Expect:
- Official classification of digital assets (security tokens, utility tokens, payment tokens)
- Licensing requirements for crypto exchanges operating in or targeting Saudi users
- Mandatory KYC and AML procedures for all service providers
- Rules around custody, insurance, and asset segregation
That means platforms like Binance and Coinbase will either have to get licensed by CMA or stop serving Saudi customers. Right now, they operate in a legal gray zone. In 2026, that won’t be an option.
Meanwhile, SAMA is testing its own central bank digital currency (CBDC). Internal documents show a pilot phase for a domestic digital riyal will launch in Q4 2025. This isn’t meant to replace cash. It’s meant to replace the need for private crypto in everyday transactions. Think of it as the government’s answer to stablecoins: a digital currency backed by the state, fully traceable, and compliant with Sharia.
What This Means for Businesses and Investors
If you’re a startup looking to build a crypto product in Saudi Arabia, here’s your roadmap:
- Align with Vision 2030. Show how your tech supports economic diversification, digital infrastructure, or green energy.
- Prove Sharia compliance. Work with local Islamic finance experts. Don’t assume your token is halal-get it certified.
- Build rock-solid AML/KYC. Even without rules, regulators are watching. Your system must be audit-ready.
- Don’t rely on banks. No Saudi bank can touch crypto without SAMA’s written approval-and that process takes 6 to 9 months.
For investors, the opportunity isn’t in buying Bitcoin. It’s in blockchain infrastructure. Companies building smart contracts for supply chains, tokenized real estate platforms, or CBDC integration tools are the ones getting government grants. The Ministry of Communications and Information Technology spent SAR 1.2 billion ($320 million) on blockchain in 2025 alone. That’s not a subsidy-it’s a strategic investment.
The Global Context: Saudi vs. UAE
Compare Saudi Arabia to the UAE. Dubai has a crypto license for everything-exchanges, wallets, mining farms. Abu Dhabi has a regulatory sandbox. Saudi Arabia? No licenses yet. But it’s catching up fast. The UAE attracts retail traders. Saudi Arabia is building the backend. One is a marketplace. The other is a factory.
That’s why Saudi crypto transaction volume is growing faster than the UAE’s-153% vs. 112% in 2024. It’s not because more people are trading Bitcoin. It’s because companies are using blockchain to move money across borders, settle trades, and track goods. The retail market is quiet. The institutional one is roaring.
Final Reality Check
Don’t believe the hype that Saudi Arabia is becoming the next crypto hub. It won’t be. It’s becoming something more valuable: a controlled, regulated, Sharia-compliant blockchain economy. The government isn’t scared of crypto. It’s smarter than that. It knows digital assets are coming. So it’s building the rules before the chaos arrives.
For Saudis, that means you can still buy crypto. But you won’t get protection. For businesses, it means you can build on blockchain-but only if you play by the government’s terms. And for investors? The real money isn’t in altcoins. It’s in the infrastructure that will power the next decade of Middle Eastern finance.
The future of crypto in Saudi Arabia isn’t about decentralization. It’s about control-with innovation.
Is cryptocurrency legal in Saudi Arabia in 2025?
Cryptocurrency isn’t illegal, but it’s not officially recognized either. Individuals can buy and hold crypto on international platforms like Coinbase or Binance, but banks are banned from dealing with crypto unless they get special approval from SAMA. There’s no law that says you can’t own it-but there’s no law that protects you if something goes wrong.
Can I mine cryptocurrency in Saudi Arabia?
Yes, but only under strict conditions. Mining is legal if it uses renewable energy and complies with environmental regulations. Saudi Arabia now accounts for about 4% of global mining activity, up from less than 1% in 2020. The NEOM project has become a hub for clean crypto mining, reducing carbon emissions by 35% since regulations were introduced.
Do I pay taxes on crypto profits in Saudi Arabia?
Individuals pay no capital gains tax on crypto profits. But if you’re a business or run a crypto-related company, you’re subject to 15% capital gains tax, 20% corporate income tax, and 2.5% zakat. This structure is designed to discourage retail speculation and encourage institutional, long-term blockchain use.
Will Saudi Arabia launch its own digital currency?
Yes. The Saudi Central Bank (SAMA) is testing a domestic central bank digital currency (CBDC), with a pilot phase expected to launch in Q4 2025. This digital riyal won’t replace cash, but it will replace the need for private stablecoins and crypto in official transactions. It’s fully traceable, Sharia-compliant, and designed to integrate with the existing financial system.
Are crypto exchanges allowed to operate in Saudi Arabia?
Currently, no exchange is officially licensed by Saudi regulators. Platforms like Binance and Coinbase operate without formal approval, relying on the lack of explicit prohibition. But new regulations expected in Q3 2025 will require all crypto service providers to apply for a license from the Capital Market Authority. Those that don’t comply will be blocked from serving Saudi customers.
Why is Saudi Arabia pushing blockchain but restricting crypto?
Saudi Arabia sees blockchain as a tool for economic modernization under Vision 2030-used in supply chains, government services, and cross-border payments. But it views retail crypto trading as speculative and risky. By allowing institutional blockchain use while restricting public crypto access, the government controls innovation without exposing the financial system to volatility. It’s a strategy of controlled adoption.
William P. Barrett
October 28, 2025 AT 23:38What's fascinating is how Saudi Arabia is treating crypto like a nuclear reactor-allowable, even useful, if contained within shielded infrastructure. The state isn't rejecting decentralization; it's redefining it to serve centralized goals. This isn't hypocrisy-it's realpolitik with a Vision 2030 stamp. The moment you stop seeing this as a crypto story and start seeing it as a sovereignty story, everything clicks.
They're not banning Bitcoin. They're building a new financial OS where Bitcoin is just an app that doesn't get root access. And honestly? That's smarter than letting retail traders crash the system with meme coins.
Cory Munoz
October 30, 2025 AT 14:15Really appreciate this breakdown. I’ve been watching this unfold and it’s wild how they’re separating the tech from the speculation. Kinda like letting people own a chainsaw but only letting the government use it to build houses.
Also, the Sharia-compliant fatwa was genius. Removes the emotional blocker without changing the tech. Smart.
Jasmine Neo
October 30, 2025 AT 16:11Oh please. This is just authoritarian control dressed up as innovation. They’re scared of financial freedom because it exposes how weak their oil-based economy is. Calling it ‘controlled adoption’? It’s censorship with a blockchain logo.
And don’t get me started on that ‘clean mining’ BS-NEOM’s powered by solar panels that cost more than the electricity they save. Greenwashing at scale. This isn’t progress-it’s propaganda with a white paper.
Ron Murphy
October 31, 2025 AT 12:55Interesting how the UK’s approach is basically ‘meh, we’ll see’ while Saudi’s doing full-stack institutional integration. The UAE’s the flashy retail hub, Saudi’s the quiet backend builder. It’s like comparing a Tesla showroom to a Tesla factory.
Also, zero capital gains tax for individuals? That’s the quiet genius. Let the people play, but make sure the real money flows where the government wants it.
Prateek Kumar Mondal
November 2, 2025 AT 05:00Nick Cooney
November 2, 2025 AT 23:38So… they’re letting people buy crypto but not letting banks touch it? That’s like letting someone own a Ferrari but banning them from driving on any road. Brilliant. Or insane. Hard to tell.
Also, typo: ‘Sharia-compliant’ is spelled right but I’m still side-eyeing the whole ‘digital gold’ thing. Gold doesn’t have 24/7 volatility. And no, I’m not a crypto bro. Just a guy who remembers 2017.
Clarice Coelho Marlière Arruda
November 4, 2025 AT 19:28wait so i can buy btc but if my wallet gets hacked im just outta luck? 😅
also why is no one talking about how wild it is that they’re doing CBDC but letting people hold btc? like… are they trying to have their cake and eat it too?
Brian Collett
November 5, 2025 AT 09:54Biggest takeaway: the real winners aren’t the traders. They’re the devs building smart contracts for logistics and supply chains. That’s where the money’s going.
Also, 4% of global mining now? That’s insane growth. Saudi’s not just playing the game-they’re rewriting the rules.