When you hear about cryptocurrency in Saudi Arabia, two things might come to mind: either it’s banned, or it’s booming. The truth? It’s both. And that’s exactly what makes the situation so confusing - and so important to understand.
Back in 2018, the Saudi government shut down crypto trading. A committee declared virtual currencies illegal. Banks were told to block all transactions. For years, if you bought Bitcoin, you did it quietly - on international platforms like Binance or Coinbase, hoping no one noticed. But today, that’s changing. The rules aren’t clear yet, but they’re moving fast.
What’s Actually Legal Right Now?
If you’re a regular Saudi citizen, you can legally buy and hold cryptocurrency. There’s no law saying you can’t. But there’s also no law saying you can. That’s the gray zone. The Saudi Central Bank (SAMA) and the Capital Market Authority (CMA) haven’t issued formal rules for personal crypto trading. So while you won’t get arrested for owning Ethereum or Solana, you won’t get legal protection either.
Here’s what’s clear: banks are still banned from handling crypto. No Saudi bank can open an account for a crypto exchange, process crypto deposits, or offer crypto-related services without SAMA’s written approval - and that approval is nearly impossible to get. That means you can’t buy Bitcoin through your local bank. You need to use an international exchange. And even then, you’re on your own if something goes wrong.
But here’s the twist: the government doesn’t care if you trade - as long as you’re not using local financial systems. In fact, data shows that 11.4% of Saudis - about 4 million people - own crypto. Transaction volume jumped 153% between July 2023 and June 2024, hitting over $31 billion. Most of that comes from young people under 30. Nearly two-thirds of Saudi Arabia’s population is under that age. They’re tech-savvy, curious, and not afraid to take risks. They’re also buying way more altcoins than global averages - not just Bitcoin and Ethereum, but lesser-known tokens too.
Why the Confusion? The Two-Sided Strategy
Saudi Arabia isn’t trying to stop crypto. It’s trying to control it. The Kingdom has a split personality when it comes to digital assets: one side bans retail trading, the other builds blockchain infrastructure.
On the institutional side, Saudi Arabia is a global leader. It’s one of the four countries in the mBridge a cross-border digital currency project led by central banks of China, Thailand, Hong Kong, and Saudi Arabia - a pilot for using blockchain to settle international payments without traditional banks. It also co-developed Project Aber a joint central bank digital currency (CBDC) initiative with the UAE back in 2019. These aren’t experiments. They’re blueprints for the future of money.
Meanwhile, the government is quietly encouraging crypto mining. By 2025, Saudi Arabia accounted for 4% of global mining activity - up from less than 1% in 2020. That’s because mining operations now operate under regulated frameworks. And they’re powered by renewable energy. In NEOM, the futuristic smart city, solar and wind farms supply power to mining rigs, cutting their carbon footprint by 35%. That’s not just smart - it’s aligned with Vision 2030’s goal to reduce oil dependence.
Even NFTs are getting official recognition. The Kingdom’s first regulated NFT platform, Nuqtah a government-approved digital asset marketplace for non-fungible tokens, launched in late 2024. It’s not for gambling or memes. It’s for art, collectibles, and verified digital ownership - all under strict compliance rules.
Religious Approval: The Sharia Factor
One of the biggest barriers to crypto adoption in Muslim-majority countries has always been religion. Is Bitcoin halal? For years, scholars debated it. Then, in early 2024, a high-ranking Saudi religious authority issued a fatwa: yes, cryptocurrency operations are permissible under Sharia law.
This wasn’t just a statement. It was a signal. For the first time, Islamic finance institutions began exploring crypto as a legitimate asset class. This helped remove a major psychological barrier for millions of Saudis who avoid anything deemed haram. The fatwa didn’t change the law - but it changed perception. And perception drives behavior.
Taxes: Pay Up If You’re a Business
Here’s where it gets messy. If you’re an individual holding crypto, you pay zero capital gains tax. That’s right - no tax on profits from selling Bitcoin or Ethereum. But if you run a business that trades crypto, you’re taxed heavily: 15% on capital gains, 20% corporate income tax, and 2.5% zakat (Islamic wealth tax).
This creates a strange incentive: individuals can trade freely, but companies can’t. No Saudi startup can legally build a crypto exchange without facing massive tax burdens. That’s why most crypto businesses operate out of Dubai or Bahrain. But that’s changing. With new regulations coming, the government is preparing to level the playing field.
What’s Coming in 2025-2026
Everyone’s waiting for one thing: official rules. And they’re coming.
According to leaked internal documents from the Capital Market Authority, new crypto asset regulations are set to be finalized in Q3 2025. These will include:
- Clear definitions of what counts as a digital asset (coins, tokens, NFTs)
- Licensing requirements for crypto exchanges operating in Saudi Arabia
- Mandatory KYC and AML procedures for all service providers
- Rules for custody, insurance, and asset segregation
That means by early 2026, you might see your first Saudi-based crypto exchange - fully licensed, regulated, and compliant. No more relying on Binance or Kraken. Local platforms will emerge, backed by Saudi banks and investors.
And it’s not just trading. SAMA is testing its own domestic CBDC a central bank digital currency for internal use. A pilot phase is expected to launch in Q4 2025. This isn’t a replacement for Bitcoin. It’s a digital version of the Saudi riyal - used for government payments, payroll, and eventually, everyday purchases.
The goal? To bring crypto into the financial system - not as a currency, but as a tool. Blockchain will power supply chains, land registries, and even voting systems. Crypto trading? That will be allowed - but only through approved, regulated channels.
What This Means for You
If you’re an individual trader: keep doing what you’re doing. Use international platforms. Don’t use your bank. Keep records. You’re not breaking any law - yet.
If you’re a business: wait. Don’t launch a crypto service until Q3 2025. The rules will change, and you’ll need to comply. Right now, operating without a license is risky - even if it’s not illegal.
If you’re an investor: look at the long game. Saudi Arabia is betting big on blockchain. The market is projected to grow from $23.1 billion in 2024 to $45.9 billion by 2033. That’s a 7.9% annual growth rate - faster than the global average. And with 7.4 million users expected by 2025, the demand is real.
The future isn’t about banning crypto. It’s about controlling it. Saudi Arabia doesn’t want you to gamble on Bitcoin. It wants you to use blockchain to build the economy of tomorrow.
Is cryptocurrency legal in Saudi Arabia in 2026?
Yes, but with major caveats. Individuals can legally buy and hold cryptocurrency on international platforms like Coinbase or Binance. However, there is no specific law legalizing it - it exists in a gray area. Banks are still prohibited from handling crypto transactions without SAMA approval. New regulations are expected in late 2025, which may formalize legal status for trading and introduce licensed local exchanges.
Can I mine cryptocurrency in Saudi Arabia?
Yes, crypto mining is legal and regulated as of 2025. Saudi Arabia now permits mining operations under specific frameworks, particularly those using renewable energy sources. The NEOM smart city project has become a hub for low-carbon mining, contributing to 4% of global mining activity. Miners must comply with environmental and energy regulations tied to Vision 2030.
Do I have to pay tax on crypto in Saudi Arabia?
Individuals do not pay capital gains tax on cryptocurrency profits. However, businesses that trade or operate crypto services face a 15% capital gains tax, 20% corporate income tax, and 2.5% zakat. This tax structure favors personal trading over commercial activity, creating a clear divide between retail users and companies.
Is Bitcoin halal in Saudi Arabia?
Yes. In early 2024, a high-ranking Saudi religious authority issued a fatwa confirming that Bitcoin and other cryptocurrency operations comply with Sharia law. This religious endorsement removed a major barrier for Muslim investors and paved the way for institutional adoption in Islamic finance.
Will Saudi Arabia launch its own cryptocurrency?
Not a public cryptocurrency like Bitcoin. Instead, the Saudi Central Bank (SAMA) is testing a domestic central bank digital currency (CBDC) - a digital version of the riyal - for use in government payments and financial infrastructure. A pilot phase is expected in late 2025. This is not meant for public trading but for efficiency, security, and integration with blockchain systems.
Next Steps for Users
If you’re trading crypto now: keep using regulated international platforms. Avoid transferring funds through Saudi banks. Document all transactions - this will matter when taxes or compliance rules change.
If you’re planning to start a crypto business: wait until Q3 2025. Monitor announcements from SAMA and the Capital Market Authority. Apply for licensing only after the new rules are published.
If you’re an investor: look beyond trading. Saudi Arabia’s real opportunity is in blockchain infrastructure - smart contracts, tokenized assets, and CBDC integration. These are where the money and innovation are heading.
The age of crypto in Saudi Arabia isn’t over - it’s just beginning. And this time, it’s being built by the government, not just the people.