Crypto holding legality in Saudi Arabia is a rapidly shifting topic that sits at the intersection of finance, religion, and emerging technology. While the Kingdom has not yet passed dedicated crypto legislation, a patchwork of warnings, fatwas, and pilot projects creates a gray zone that investors must navigate carefully.

Quick Summary

• Crypto assets are not recognized as legal tender, but individuals can hold them without a specific license.
• Banking institutions need explicit approval from SAMA to deal with crypto; most banks are barred.
• Capital gains on personal crypto holdings are tax‑free; businesses face a 15% capital gains tax plus 20% corporate tax and 2.5% zakat.
• Anti‑money‑laundering laws apply broadly, treating crypto as a "fund" under existing AML statutes.
• The government is testing a CBDC via the mBridge pilot, signalling long‑term interest despite current restrictions.

Current Legal Landscape

The Kingdom’s stance has swung between outright bans and cautious acceptance. In 2018 a committee declared virtual currencies illegal, and the Ministry of Finance reiterated that crypto is unlicensed in 2019. Those statements still shape public perception, but a 2023 fatwa from a senior religious authority declared Bitcoin and similar assets compatible with Sharia law. That religious endorsement nudged regulators toward a more nuanced approach.

Today, Saudi Central Bank (SAMA) and the Capital Market Authority (CMA) enforce a risk‑averse framework: banks cannot trade crypto without a specific SAMA license, and the CMA monitors securities‑related activities, but there is no statutory definition of crypto as a financial instrument.

Tax Implications for Holders

From a fiscal standpoint, Saudi Arabia treats crypto as an asset, not as legal tender. Individuals enjoy a zero‑rate capital gains tax on personal crypto sales, which is a rare advantage in the region. Companies, however, must report crypto gains as part of their corporate income. The current rates are:

• 15% capital gains tax on crypto‑related profit for businesses.
• 20% corporate income tax on overall earnings.
• 2.5% zakat applied to net assets, including crypto holdings.

There is no VAT on crypto transactions because the asset is not classified as a good or service.

Regulatory Bodies and Their Roles

Understanding who does what helps you avoid accidental non‑compliance:

• SAMA - Sets monetary policy, issues banking licences, and oversees any crypto‑related activity by financial institutions.
• CMA - Regulates securities markets, watches for tokenized securities, and issues guidance on crypto‑linked assets.
• Ministry of Finance - Issues public warnings, enforces anti‑fraud measures, and monitors the use of national symbols in crypto marketing.
• Communications and Space Technology Commission (CST) - Coordinates technology standards and aligns digital innovation with Vision 2030 goals.

Anti‑Money‑Laundering (AML) and Know‑Your‑Customer (KYC) Landscape

Although the 2017 AML and anti‑terrorism financing laws do not name crypto specifically, their broad definitions of “funds” encompass digital assets. This means:

• Any entity dealing with crypto must implement AML/KYC protocols that satisfy the spirit of Royal Decree No. (M/20) and No. (M/21).
• Failure to conduct proper due diligence can trigger investigations for money‑laundering or financing of terrorism.
• Businesses using the Kingdom’s name or emblem in crypto promotions face legal action from the Ministry of Finance.

Market Size and Activity

Despite regulatory uncertainty, the Saudi crypto market is booming. In 2024 the market was valued at $23.1billion, and analysts project $45.9billion by 2033-a 7.9% CAGR. Transaction volume surged 153% between July2023 and June2024, topping $31billion, driven largely by institutional players. Approximately 11.4% of the population-about 4million people-own crypto assets.

Young Saudis (under 30) make up 63% of the user base, feeding a vibrant retail scene, while institutional interest is reflected in tokenization projects from firms like Goldman Sachs and Rothschild, both planning blockchain‑based token offerings in the Kingdom.

Institutional Initiatives and CBDC Exploration

SAMA is not ignoring digital innovation. The central bank has launched comprehensive CBDC capability studies and joined the mBridge pilot in 2024, collaborating with the UAE, China, Thailand, and Hong Kong. The pilot, an evolution of the 2019 Project Aber, tests cross‑border digital payments and signals that a sovereign digital Riyal could appear within the next few years.

Practical Compliance Checklist for Crypto Holders

1. Confirm that you are an individual investor-not a regulated financial institution-before buying or holding crypto.
2. Use reputable exchanges that have obtained SAMA approval (if any) or operate offshore with clear KYC procedures.
3. Keep detailed transaction records to prove source of funds if AML authorities inquire.
4. Report any crypto‑related business income on your corporate tax return; apply the 15% capital gains rate.
5. Stay updated on Ministry of Finance alerts to avoid using protected national symbols in any promotional activity.
6. If you plan to launch a tokenized security, secure CMA clearance and follow its token‑offering guidelines.

Comparison of Key Regulatory Factors

Future Outlook (2025‑2026 and Beyond)

Legislation aimed at clarifying crypto activities is expected to land by the end of 2025. Drafts suggest a three‑tier model:

• Tier1 - Personal holding and retail trading with basic AML/KYC.
• Tier2 - Institutional tokenization of assets under CMA supervision.
• Tier3 - Potential launch of a sovereign digital Riyal via the CBDC pilot.

Analysts anticipate that once the framework is in place, institutional volume will double, while retail participation will stay strong thanks to the country’s youthful demographic. Investors should monitor official gazettes and SAMA press releases for the exact effective dates.

Next Steps for Prospective Crypto Holders

1. Verify the exchange’s licensing status on SAMA’s portal.
2. Document every purchase, transfer, and sale for future tax or AML queries.
3. Consider using a custodial wallet that complies with Saudi data‑storage regulations (local servers are preferred).
4. Stay informed about the upcoming crypto‑specific law-sign up for newsletters from the CMA and Vision 2030 task forces.
5. If you plan a business around crypto, engage a local legal adviser early to align with AML and zakat obligations.

Frequently Asked Questions

Can I legally own Bitcoin as a Saudi citizen?

Yes. Holding Bitcoin for personal investment is not prohibited, but you cannot use it as legal tender or expect bank support without a SAMA licence.

Do I need to pay tax on crypto profits?

Individuals face zero capital‑gains tax. Companies must pay a 15% capital‑gains tax in addition to standard corporate taxes and zakat.

Are Saudi banks allowed to offer crypto services?

Only banks that obtain explicit approval from SAMA can provide crypto‑related services; most banks choose not to.

How does AML law affect my crypto transactions?

Crypto is treated as a “fund” under the 2017 AML and anti‑terrorism financing laws, so you must keep records and apply standard KYC checks when using regulated exchanges.

What is the Saudi CBDC project about?

SAMA is testing a central bank digital Riyal through the mBridge pilot, aiming for faster cross‑border payments and eventual domestic rollout.