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

4 September 2025

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, not regulated, and potentially risky. On the other hand, millions of Saudis are actively buying, selling, and holding digital assets-and the country’s crypto market is growing faster than almost anywhere else in the Middle East.

What Does the Law Actually Say?

There is no specific law in Saudi Arabia that says, "You cannot own crypto." But there’s also no law that says you can. That’s the grey zone. The Saudi Central Bank (SAMA) and the Capital Market Authority (CMA) have repeatedly issued public warnings. In 2018 and 2019, official statements called virtual currencies "illegal" and "unlicensed." Banks were told not to process crypto transactions. Financial institutions were banned from trading or holding digital assets.

But here’s the twist: these warnings weren’t laws. They were regulatory notices. No court has ever convicted someone just for owning Bitcoin. No one has been arrested for holding Ethereum in a personal wallet. The government hasn’t shut down crypto exchanges operating in the country, even though they’re not licensed.

This isn’t accidental. It’s strategy. Saudi Arabia wants to control the narrative without fully blocking innovation. They’re watching how people use crypto-and how institutions might benefit from blockchain technology.

Religious Approval Changed the Game

In 2021, a major shift happened. A senior religious authority in Saudi Arabia, part of the country’s highest Islamic legal body, issued a fatwa. This wasn’t just an opinion-it was a formal religious ruling. The fatwa stated that using Bitcoin and other cryptocurrencies does not violate Sharia law, as long as they’re not used for gambling, fraud, or money laundering.

This was huge. In a country where religious guidance shapes public policy, a fatwa like this carries weight. It didn’t make crypto legal overnight, but it removed a major moral barrier. Suddenly, millions of Muslims who had been hesitant to touch crypto felt more comfortable. The number of crypto owners in Saudi Arabia jumped from 6% to 11.4% of the population within two years.

How Many People Are Actually Holding Crypto?

Despite the warnings, Saudi Arabia has the second-largest crypto market in the Middle East. In 2024, the market was worth $23.1 billion. By 2025, it’s expected to generate nearly $500 million in revenue. Around 4 million Saudis-about one in nine adults-own some form of cryptocurrency.

The real driver? Youth. Over 63% of Saudi Arabia’s population is under 30. This generation grew up with smartphones, social media, and global financial trends. They don’t see crypto as risky because it’s new. They see it as the future. Crypto trading volumes surged 153% between July 2023 and June 2024, hitting $31 billion. Most of that activity came from individuals-not institutions.

And it’s not just Bitcoin. Altcoins like Solana, Cardano, and Dogecoin are far more popular in Saudi Arabia than in most other countries. Traders here are more willing to experiment, chase high-risk assets, and join decentralized exchanges.

What About Banks and Businesses?

Here’s where the rules get strict. Banks and financial institutions in Saudi Arabia are still forbidden from dealing with crypto unless they get special permission from SAMA. That means you can’t buy Bitcoin with your bank account directly. You can’t cash out crypto into your savings account through a local bank. Most ATMs won’t let you withdraw cash using crypto.

But here’s the irony: while retail crypto is ignored, the government is investing heavily in blockchain. SAMA is running pilot programs with the UAE, China, Thailand, and Hong Kong on a cross-border digital currency called mBridge. Goldman Sachs and Rothschild are building tokenized bond platforms in Riyadh. The Kingdom is creating a digital financial infrastructure-but only for institutions, not individuals.

So if you’re a business owner? Don’t try to accept crypto as payment. Don’t market your product as "crypto-friendly." The Ministry of Finance has warned that using Saudi national symbols or branding to promote crypto could lead to legal action. The rules are clear: don’t advertise it. Don’t institutionalize it. But don’t worry if you hold it privately.

Taxes: Do You Owe Anything?

Saudi Arabia doesn’t have a capital gains tax. That means if you bought Bitcoin at $30,000 and sold it at $70,000, you don’t pay the government a single riyal on that profit. The same goes for Ethereum, Solana, or any other crypto asset.

For individuals, crypto is treated like any other asset-like gold, real estate, or stocks. No tax on gains. No tax on holding. No tax on transfers between wallets.

But if you run a business that trades crypto or accepts it as payment? Things change. Your profits from crypto trading are subject to corporate income tax (20%) and zakat (2.5%). If you’re a business, you need to track your crypto transactions like any other financial activity. The government doesn’t require you to report them, but if you’re audited, you’ll need proof.

Is Crypto Legal or Illegal? The Real Answer

It’s not illegal to hold crypto in Saudi Arabia. But it’s not officially legal either. The government hasn’t banned it. It just hasn’t approved it. You won’t go to jail for owning Bitcoin. But if you try to open a crypto exchange, get a license, or convince a bank to support it-you’ll hit a wall.

The Kingdom is playing a long game. They’re letting the market grow quietly while they build the infrastructure to control it later. They’re testing CBDCs. They’re partnering with global banks on tokenization. They’re watching how young Saudis use crypto to understand the risks and opportunities.

By 2025, new legislation is expected. Some analysts think Saudi Arabia will create a licensing system for crypto exchanges. Others believe they’ll introduce a state-backed digital currency that replaces private crypto for everyday use. Either way, the current grey area won’t last forever.

What Should You Do?

If you’re a private holder: you’re not breaking any law. Use a non-custodial wallet. Keep your private keys safe. Don’t tell your bank. Don’t use your Saudi bank account to buy crypto. Use peer-to-peer platforms or international exchanges with cash-in options.

If you’re a business: avoid crypto entirely. Don’t accept it as payment. Don’t promote it. Don’t build products around it. The risks far outweigh any potential rewards under current rules.

If you’re an investor: be aware that the rules could change overnight. There’s no investor protection. If an exchange gets shut down, your funds might disappear. No one will compensate you. Treat crypto like high-risk speculation-not savings.

What’s Next for Crypto in Saudi Arabia?

The future is unclear, but the direction is obvious. Saudi Arabia isn’t rejecting crypto. It’s preparing to own it. The government wants to be the leader in digital finance in the region. That means controlling the narrative, controlling the infrastructure, and eventually controlling the assets.

The next big move will likely be a regulated crypto exchange platform-run by the state or a state-approved partner. That’s how countries like the UAE and Singapore did it. First, let the market grow. Then, bring it under the umbrella.

For now, Saudi Arabia is the wild west of crypto in the Middle East. No rules, but no crackdown either. Millions are playing. The government is watching. And in a few years, the game might change completely.