The credibility of Cryptocurrency has boggled many countries. Saudi Arabia too has now joined the brigade of nations who have circulated a petition to ban the concept of cryptocurrency. In a major crackdown, Saudi Arabia issued a warning against the “illusion and get-rich” schemes by high-risk traders.
A government committee comprising of government ministries and other departments have issued the warning against the use of cryptocurrency. In a statement, the committee said the reason was that bitcoin poses “negative consequences and high risks on traders” as it is outside of government control.
A watchdog was formed by the supreme decree to monitor the illegitimate transactions. It is headed by Capital Market Authority, Ministry of Interior membership, Ministry of Media, Ministry of Commerce and Investment and Saudi Arabian Monetary Authority. The government is taking stringent measures to curb the transactions with virtual currencies and therefore, has banned the cryptocurrency.
According to Express, Saudi Arabia’s citizens and residents have been urged to not drift “after such illusion and get-rich” schemes due to security and market risks involved. Many eyewash schemes will lure investors into the signing of fictitious contracts and transfer of funds to unknown recipients. Therefore, banning cryptocurrency is indispensable.
Saudi Prince Al-Waleed bin Talal criticised bitcoin during an appearance on CNBC in October last year, slamming it as a “fraud”. He was previously quoted as saying, “I just don’t believe in this bitcoin thing.” He has stated that before comparing it to Enron, the American energy company that flopped in 2000.
The announcement follows the launch of BitOasis, the first bitcoin company in the Middle Eastern and North Africa region. Overall, Saudi Arabia is unsure about cryptocurrencies reliability and finds the concept to be a delusion. Therefore, they have suppressed the circulation of virtual currency by imposing a ban on it.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]