Is It Legal to Hold Crypto in Saudi Arabia? 2025 Guide

Can you legally hold Bitcoin or Ethereum in Saudi Arabia? The answer isn’t simple. On one hand, the government has warned citizens for years that cryptocurrencies are not recognized as legal assets. On the other, millions of Saudis are buying, trading, and holding digital coins - and the country’s central bank is quietly building its own digital currency system. This contradiction defines Saudi Arabia’s crypto reality in 2025.

What the Government Says vs. What People Do

In 2018, Saudi authorities declared virtual currencies illegal. The Ministry of Finance said they weren’t regulated, weren’t backed by any institution, and carried serious risks. Banks were told not to touch them. Financial firms were banned from offering crypto services. The message was clear: stay away.

But here’s the twist. In 2024, an influential Islamic scholar issued a fatwa - a formal religious ruling - stating that owning and trading Bitcoin is Sharia-compliant. That changed everything. Suddenly, the moral objection to crypto lost steam. People didn’t need government permission to believe it was acceptable. They just needed religious approval - and they got it.

Today, about 11.4% of Saudis - roughly 4 million people - own cryptocurrency. That’s one in nine. The market value of crypto assets held in the Kingdom hit $23.1 billion in 2024. Transaction volume jumped 153% in just one year, crossing $31 billion. Most of this activity comes from young people under 30, who make up 63% of the population. They’re not waiting for permission. They’re using apps, peer-to-peer platforms, and offshore exchanges to buy Bitcoin, Ethereum, and altcoins.

Are You Breaking the Law by Holding Crypto?

Technically, yes - but only if you look at old government warnings. There’s no law that says, “It is illegal to own Bitcoin.” Instead, regulators avoid saying it’s legal. They call it a “high-risk activity” and warn that you’re on your own if something goes wrong. No investor protection. No dispute resolution. No recourse if an exchange gets hacked or disappears.

The Saudi Central Bank (SAMA) and the Capital Market Authority (CMA) don’t license crypto exchanges operating inside the country. That means no local platform can legally offer crypto trading to retail users. But that doesn’t stop people. Many Saudis use international platforms like Binance, Kraken, or Bybit. They deposit fiat money through peer-to-peer (P2P) sellers, use local payment apps like STC Pay, or even buy crypto with gift cards. These methods fly under the radar.

As long as you’re not laundering money, financing terrorism, or using your Saudi bank account to directly buy crypto, you’re not being actively hunted. The government isn’t raiding homes or arresting individuals for holding coins. Enforcement is focused on businesses, not individuals.

What About Taxes?

Saudi Arabia doesn’t tax personal income - including capital gains from crypto. If you buy Bitcoin for $20,000 and sell it for $50,000, you keep the $30,000 profit. No tax. No reporting. No form to file.

But if you run a business that trades crypto - say, you operate a crypto brokerage or accept Bitcoin as payment - things change. Your company pays 20% corporate income tax. On top of that, you owe 2.5% zakat (Islamic charitable tax) on your net assets. And if your business earns capital gains from crypto, you might pay 15% on those profits.

The key difference? Individuals are invisible to the tax system. Businesses are not. That’s why most retail holders never see the inside of a tax office.

Why Is the Government Still Pushing Blockchain?

Here’s where things get interesting. While regular citizens are told to tread carefully, the government is investing billions into blockchain technology.

SAMA is leading a major project called mBridge - a joint digital currency initiative with the UAE, China, Thailand, and Hong Kong. This isn’t Bitcoin. It’s a central bank digital currency (CBDC) designed for cross-border payments between banks. In 2024, Saudi Arabia and the UAE successfully completed real-world transactions using this system.

Big banks like Goldman Sachs and Rothschild are setting up tokenization platforms in Riyadh. They’re turning bonds, real estate, and trade finance into digital tokens - making them easier to buy, sell, and track. These aren’t speculative coins. They’re regulated financial instruments built on blockchain.

The message? The government doesn’t hate crypto. It hates unregulated, retail-driven crypto. It loves controlled, institutional, blockchain-based finance.

What’s the Risk of Holding Crypto in Saudi Arabia?

The biggest risk isn’t jail. It’s losing your money.

No local exchange is regulated. No wallet provider is licensed. If you use a platform that gets shut down or hacked, you have no legal right to compensation. If you send crypto to the wrong address, there’s no customer service to help you. If you’re scammed in a P2P deal, the police won’t help you - because crypto isn’t recognized as property under Saudi law.

Also, marketing crypto as a “safe investment” using Saudi national symbols (like the flag or royal name) is illegal. The Ministry of Finance has cracked down on influencers and companies doing this. One local startup was fined and forced to shut down after promoting “Saudi-approved Bitcoin.”

And while you’re not being arrested, the government could change the rules overnight. A new law could declare crypto ownership illegal - retroactively. That’s the nature of operating in a regulatory grey zone.

What’s Coming in 2025?

Experts expect new crypto regulations to be introduced in 2025. The goal? To bring the market into the light - without killing it.

The plan appears to be: license institutional platforms, allow institutional trading, and restrict retail access to high-risk assets. Think of it like the stock market - you can trade blue-chip stocks, but not penny stocks without special approval.

There’s also talk of creating a government-backed crypto wallet for citizens - one that lets you buy and hold digital assets through a secure, monitored system. This would be similar to the CBDC, but open to individuals. It would give the government control over who buys what, how much, and when.

If this happens, Saudi Arabia will become the first Gulf country to offer a regulated, state-supervised crypto wallet for everyday users. That’s a huge shift from “don’t do it” to “do it, but only with us.”

Bottom Line: Is It Legal? Should You Do It?

Holding crypto in Saudi Arabia isn’t explicitly illegal - but it’s not protected, either. You’re not breaking the law by owning Bitcoin. But you’re not protected by the law either.

Millions of Saudis are doing it. The market is growing fast. The youth are driving it. The religious authorities say it’s okay. The central bank is building the infrastructure for the future.

If you’re holding crypto, here’s what you should do:

• Never use your Saudi bank account to directly buy crypto - use P2P or offshore platforms instead.
• Store your coins in a non-custodial wallet (like Ledger or Trezor), not on an exchange.
• Don’t promote crypto as a guaranteed investment - avoid using Saudi branding or official symbols.
• Keep records of your transactions - even if not required, it helps if laws change.
• Don’t invest more than you can afford to lose - there’s no safety net.

The future of crypto in Saudi Arabia isn’t about banning it. It’s about controlling it. The government wants to be the gatekeeper - not the enemy. If you’re smart, you’ll stay ahead of the curve without stepping on the line.