When Saudi Arabia first banned cryptocurrencies in 2018, it looked like the end of the road for digital assets in the Kingdom. But today, that ban isn’t really a ban at all. It’s more like a pause - a careful, calculated one. While regular people can still buy Bitcoin on Coinbase or Binance without getting arrested, banks can’t touch crypto unless they get special permission from the Saudi Central Bank (SAMA). And that’s just the beginning.
From Ban to Bypass: How Saudis Trade Crypto Anyway
You won’t find a single licensed local crypto exchange in Saudi Arabia. Yet, an estimated 4 million Saudis - about 11.4% of the population - own cryptocurrency. How? They use international platforms. Binance, Coinbase, and Kraken are the top three apps used by Saudis, according to user reports from Reddit and Trustpilot in early 2025. Many users say they’ve been trading for years without issues. But they’re cautious. One Reddit user, RiyadhTrader88, wrote: “I’ve been using Coinbase for two years without issues, but SAMA’s warnings make me cautious about holding large amounts.”
That caution isn’t irrational. SAMA has issued multiple public warnings since 2019, telling citizens that crypto is “not recognized” and that using it carries “high risk.” But here’s the twist: they never said it’s illegal. The Library of Congress confirms that Saudi law doesn’t explicitly ban crypto. Instead, it treats it as an asset - not money. That’s why individuals can legally hold Bitcoin, Ethereum, or Dogecoin. But they can’t use it to pay for coffee or rent. And no bank can process a crypto transaction without SAMA’s written approval.
Why the Double Standard? Institutions vs. Individuals
The real story isn’t about what individuals do. It’s about what institutions are allowed to build. Saudi Arabia isn’t trying to stop crypto. It’s trying to control it - and only let the right players in.
Take mining. In 2020, Saudi Arabia accounted for less than 1% of global crypto mining. By 2025, that jumped to 4%. Why? Because the government now allows it - as long as it’s powered by renewable energy. The NEOM smart city project is a prime example. Solar and wind farms now power mining rigs, cutting their carbon footprint by 35% since regulations were introduced. That’s not just smart economics. It’s aligned with Vision 2030’s goal of becoming a green tech leader.
And then there’s the mBridge project. Saudi Arabia is one of four countries - along with China, UAE, and Thailand - testing a cross-border digital currency system built on blockchain. This isn’t a side project. It’s a national priority. SAMA and the Central Bank of the UAE are co-developing this system to replace outdated SWIFT transfers. The goal? Faster, cheaper, and more secure international payments. If this works, it could reshape how trillions in trade move across borders.
Even NFTs are getting official recognition. Nuqtah, Saudi Arabia’s first regulated NFT marketplace, launched in late 2024. It’s not open to the public yet. But it’s licensed by the Communications, Space and Technology Commission (CST). That means the government is ready to oversee digital assets - just not on a retail level.
Religious Approval: The Fatwa That Changed Everything
One of the biggest turning points came in early 2024, when a high-ranking Islamic scholar issued a fatwa: Bitcoin and other cryptocurrencies are Sharia-compliant. That wasn’t just a religious opinion. It was a green light for Islamic finance.
Before this, many Saudis hesitated to touch crypto because they weren’t sure if it violated Islamic law. The fatwa removed that barrier. Now, Sharia-compliant crypto funds are being discussed at the King Faisal Center for Research. Dr. Ahmed Al-Sudairi, the center’s Director of Research, said in January 2025: “Saudi Arabia’s regulatory approach balances religious compliance with technological advancement, creating a unique model for Islamic finance integration with digital assets.”
This matters because Saudi Arabia is home to over 100 million Muslims. If crypto can be made Sharia-compliant, it opens the door for massive adoption across the entire Muslim world - not just in Saudi.
What’s Coming in 2025: The Rules Are About to Change
The biggest shift isn’t happening now. It’s coming in the next few months.
According to leaked documents from Bloomberg in December 2024, the Capital Market Authority (CMA) plans to issue its first official crypto asset regulations in Q3 2025. These rules will define what counts as a digital asset, who can custody them, and how exchanges must operate. Think of it like the SEC’s rules in the U.S., but built for Saudi law and Sharia principles.
SAMA is also expected to release joint guidelines with the CMA in Q1 2025. These will create a formal registration system for crypto service providers. That means companies like Binance or Kraken might soon be required to register with Saudi regulators - not just operate from abroad.
And then there’s the CBDC. SAMA has been testing a domestic digital riyal since late 2024. Internal documents show a pilot launch is scheduled for Q4 2025. This isn’t a crypto coin. It’s a government-backed digital currency - the same kind China and the EU are building. But here’s the key: it will be designed to work alongside crypto assets, not replace them. That’s a huge signal. The government doesn’t want to kill crypto. It wants to integrate it.
Tax Rules: Pay Nothing as an Individual, Pay Big as a Business
Here’s something most people don’t realize: Saudis don’t pay capital gains tax on crypto. Ever. If you bought Bitcoin in 2020 and sold it for a profit in 2025, you keep every riyal. No taxes. No reporting.
But if you run a company that trades crypto? You’re in a different world. You’ll pay 15% capital gains tax, 20% corporate income tax, and 2.5% zakat - the Islamic wealth tax. That’s why most crypto businesses in Saudi are structured as offshore entities. Only a few brave startups are trying to operate locally.
That tax gap creates a strange incentive: individuals can get rich on crypto. Businesses? They’re stuck in legal gray zones. Until new laws come, this imbalance will keep growing.
The Numbers Don’t Lie: A Billion Market That’s Only Getting Started
Despite all the uncertainty, Saudi Arabia’s crypto market hit $23.1 billion in value in 2024. That’s second only to the UAE in the Middle East. And it’s growing fast. Transaction volume jumped 153% between July 2023 and June 2024 - over $31 billion traded. That’s more than double the regional average.
By 2033, that market is projected to hit $45.9 billion, growing at 7.9% per year. That’s faster than the global average of 6.8%. Why? Because 63% of Saudis are under 30. They’re tech-native. They trust apps more than banks. And they’re not afraid to take risks.
Altcoins are especially popular. While Americans mostly buy Bitcoin and Ethereum, Saudis are diving into Solana, Cardano, and even meme coins. That tells you something: this isn’t just about investment. It’s about culture.
What’s Next? The Path Forward
Saudi Arabia isn’t banning crypto. It’s building around it.
The future isn’t about whether you can buy Bitcoin. It’s about whether you can use blockchain to settle international trade, tokenize real estate, or issue Sharia-compliant bonds on a public ledger. The government knows this. That’s why it’s spending SAR 1.2 billion ($320 million) on blockchain projects in 2025 alone.
By the end of 2025, you’ll see:
- Formal licensing for crypto exchanges operating in or targeting Saudi Arabia
- Clear definitions of digital assets under Saudi law
- A national CBDC pilot launch
- More NFT and DeFi platforms approved under CST oversight
- Banking partnerships with regulated crypto firms - if they meet SAMA’s strict criteria
The message is simple: if you’re building something real - something that helps Vision 2030 - you’ll get support. If you’re just trading on Binance? You’re on your own. But you’re not stopped.
laura mundy
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