Saudi Arabia’s permanent Committee for raising awareness of transactions in unregistered securities, which included representatives from five financial regulators: the country has officially stated that cryptocurrency trading in the Kingdom is outside the law, and traders that conduct transactions with such assets without government oversight, can face negative consequences and considerable risks.

The Committee argues that virtual currencies, such as bitcoin, and not only they, within the state are considered illegal and no company or individual not licensed to work with them.

Government authority also recommended that the citizens and residents of the country to refrain from participating in the midst of profitable schemes and transfer of funds to unknown persons on fictitious contracts. However, the Committee is ready to provide information about the companies who are authorized to work with investments in the financial market, stakeholders.

Recall that a month ago, the municipality of Riyadh, capital of Saudi Arabia, has selected IBM as a strategic partner to support the implementation of a blockchain technology in public services and transactions. And in February of this year, blockchain startup Ripple and the Agency of circulation of money of Saudi Arabia (SAMA) has signed an agreement to run a pilot program on the use of cryptocurrency to carry out Bank payments.