Despite being one of the fastest-growing crypto markets in the Middle East, Saudi Arabia has kept its banks locked out of cryptocurrency transactions since 2018. You can’t buy Bitcoin with your bank account. You can’t deposit crypto earnings into your local checking account. And if you run a crypto business, you’re forced to find workarounds just to pay your bills or payroll. This isn’t a gray area-it’s a hard wall between digital assets and the traditional financial system.
How the Ban Works
The Saudi Central Bank (SAMA) doesn’t just discourage crypto-it blocks it. Banks and financial institutions in Saudi Arabia are explicitly forbidden from processing any transactions involving Bitcoin, Ethereum, or any other cryptocurrency. This rule applies to all local banks, including Riyad Bank, National Commercial Bank, and Al Rajhi Bank. Even if you have a legitimate reason to transfer crypto to SAR or vice versa, the system won’t let you. The ban isn’t a suggestion. It’s a regulation with real consequences.What makes this even more confusing is that owning crypto isn’t illegal. You can buy it through peer-to-peer platforms, use international exchanges, or trade via non-bank payment channels. But once you want to turn it into real money-SAR-you hit a dead end. There’s no legal bridge between your digital wallet and your local bank account.
Why the Ban Exists
SAMA’s reasoning is simple: they don’t trust it. Cryptocurrencies operate outside government control. They’re anonymous, decentralized, and hard to track. That’s a red flag for regulators worried about money laundering, terrorist financing, and financial instability. The Anti-Money Laundering Law and Counter-Terrorism Financing Law don’t mention crypto by name, but they define "funds" broadly enough to include digital assets. That means if you’re caught moving large sums of crypto without proper records, you could still be investigated under existing laws.There’s also the issue of consumer protection. The government has issued multiple warnings since 2018, telling people that crypto investments are risky, unregulated, and not backed by any authority. If you lose money trading on an offshore exchange, you have no legal recourse. No refund. No compensation. No oversight.
The Paradox: Crypto Growth Despite the Ban
Here’s the twist: the ban hasn’t stopped adoption. In 2024, Saudi Arabia’s crypto market hit $23.1 billion in value. Over 4 million Saudis-about 11.4% of the population-own digital assets. Transaction volume jumped 153% between July 2023 and June 2024, hitting $31 billion. That’s not small-time trading. That’s institutional-level activity.So how is it happening? People are using international exchanges, peer-to-peer platforms like Paxful and LocalBitcoins, and third-party payment processors that operate outside the Saudi banking system. Some use prepaid cards funded through overseas accounts. Others rely on trusted intermediaries who handle the SAR conversion on their behalf. It’s messy. It’s risky. But it works.
What About Businesses?
For crypto startups or businesses in Saudi Arabia, the ban is a nightmare. You can’t open a business bank account if your revenue comes from crypto. You can’t pay employees in SAR if your income is in Bitcoin. You can’t pay taxes through normal channels because the government doesn’t have a system for crypto tax reporting.Businesses are forced to use offshore banks in places like the UAE, Singapore, or even Europe. That adds cost, complexity, and legal risk. And there’s no clear guidance on what’s allowed. One company might get away with using a foreign account. Another might get flagged by SAMA for suspicious activity. The lack of rules makes compliance impossible.
Taxes add another layer. While individuals don’t pay capital gains tax on crypto, businesses do. That means if you’re running a crypto trading operation, you owe 15% capital gains tax, 20% corporate income tax, and 2.5% zakat. But how do you report it if your bank won’t touch crypto? Many businesses hire international accountants just to keep their records clean.
Religious Acceptance vs. Banking Block
One of the most surprising developments in Saudi crypto history came in 2023, when a senior religious scholar issued a fatwa stating that Bitcoin and other cryptocurrencies are Sharia-compliant. The ruling said that as long as transactions are transparent, free from fraud, and not tied to gambling or interest, crypto trading is permissible under Islamic law.This was a major shift. For years, religious leaders had been silent-or skeptical-about digital assets. Now, a key voice in the Kingdom has said: yes, this is okay. But that religious green light doesn’t change the banking ban. It just creates a strange disconnect: something can be religiously allowed but financially forbidden.
What’s the Government Really Doing?
While banks are blocked from crypto, the government is quietly building its own digital currency. Saudi Arabia is part of the mBridge project-a joint CBDC initiative with China, the UAE, Thailand, and Hong Kong. SAMA is testing a digital riyal that could one day replace cash and streamline payments.This isn’t a contradiction. It’s control. The government wants the benefits of blockchain-faster payments, lower costs, better tracking-but only under its own rules. A state-backed digital currency can be monitored, taxed, and restricted. Bitcoin can’t.
That’s the real goal: not to ban digital money, but to own it.
Who’s Affected the Most?
Young Saudis-63% of the population is under 30-are driving crypto adoption. They’re tech-savvy, distrustful of traditional finance, and open to alternatives. Many use crypto to invest overseas, send remittances, or access global markets blocked by local banks.Investors are also affected. Institutional funds can’t access crypto through local channels. Hedge funds and family offices that want to diversify into digital assets have to set up offshore structures. That’s expensive and slow. It pushes capital out of the Kingdom instead of keeping it inside.
And then there are the everyday users. Someone who mines crypto or earns it through freelance work has no easy way to spend it locally. No restaurants, no shops, no utility providers accept crypto. So you’re stuck holding it-or finding a risky workaround to convert it.
What’s Next?
There’s no official timeline for lifting the ban. No draft law is public. No committee has been announced. The government’s stance remains: "We’re watching. We’re testing. But we’re not opening the door yet."But pressure is building. With $498.2 million in expected crypto revenue in 2025 and 7.4 million users, the market is too big to ignore. The religious endorsement, the youth demographic, and the global shift toward digital finance are all pushing Saudi Arabia toward change.
Don’t expect a full legalization anytime soon. But you might see a pilot program-maybe allowing licensed crypto firms to partner with banks under strict supervision. Or a regulated exchange that operates like a stock market, with SAMA oversight. That’s the likely path: controlled access, not open access.
For now, the ban stays. The market grows. And the gap between what people want and what the system allows keeps widening.
What Should You Do?
If you’re an individual trader: know the risks. Use reputable exchanges. Keep records. Don’t assume your bank will protect you. And never send large sums without understanding the legal gray zone.If you’re a business owner: consult a legal expert who understands both Saudi finance and crypto. Don’t try to fake your way through compliance. The penalties are real.
If you’re an investor: recognize that Saudi Arabia is a high-risk, high-reward market. The growth is real. The access is blocked. The future is uncertain. But the momentum isn’t going away.
Rebecca Andrews
I'm a blockchain analyst and cryptocurrency content strategist. I publish practical guides on coin fundamentals, exchange mechanics, and curated airdrop opportunities. I also advise startups on tokenomics and risk controls. My goal is to translate complex protocols into clear, actionable insights.
24 Comments
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Abdulahi Oluwasegun Fagbayi
January 27, 2026 AT 17:00The ban makes sense from a control perspective but ignores human behavior. People will always find a way to transact when they see value. The real question is whether the state will adapt or just keep digging its heels in
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Margaret Roberts
January 28, 2026 AT 19:43This is just the beginning of the financial collapse. Once everyone starts using crypto, the government loses all power. They know it. That’s why they’re terrified. Don’t be fooled by the CBDC-they’re just building a better surveillance tool.
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Tselane Sebatane
January 30, 2026 AT 10:43I’ve been watching this for years and honestly I’m blown away. The fact that 4 million people are using crypto in a country that bans it through banks? That’s not just adoption-that’s revolution. People aren’t waiting for permission. They’re just doing it. And the banks? They’re stuck in 2008. Meanwhile, teens in Riyadh are buying ETH with cash from a guy at the mall. That’s power. That’s change. That’s what happens when you stop asking for approval and start taking action. The future isn’t coming. It’s already here. And it’s not asking for a visa.
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Jonny Lindva
January 31, 2026 AT 01:34Honestly this makes me want to learn more. I’ve always thought crypto was too wild, but seeing how people are making it work despite the rules? That’s real resilience. Maybe we need more systems that adapt instead of just shutting things down.
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Jen Allanson
February 1, 2026 AT 15:30The regulatory framework in Saudi Arabia is not merely prudent-it is constitutionally and economically imperative. The absence of legal tender recognition for cryptographic assets precludes their integration into a fiduciary system predicated upon sovereign accountability. To permit unregulated digital asset transactions would constitute a dereliction of fiscal stewardship.
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Harshal Parmar
February 3, 2026 AT 11:34Man, I love how this plays out. You got this whole generation that grew up with smartphones and blockchain, and the banks are still stuck on paper forms and KYC checks that take three days. I know a guy in Jeddah who mines Bitcoin in his garage and pays his rent in USDT through a friend who works at a Dubai exchange. His landlord doesn’t even care as long as the SAR hits his account. Meanwhile, SAMA’s sitting there like, 'We’re watching.' Bro, you’re already late. The train left the station. The question isn’t if they’ll open up-it’s how fast they can catch up without looking like they were wrong the whole time.
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Darrell Cole
February 3, 2026 AT 18:27You people act like this is some kind of rebellion but its just illegal activity dressed up as innovation. The fact that people are risking legal trouble for crypto proves they're desperate not smart. And that CBDC? That's the only sane path. Everything else is gambling with your life savings and expecting the state to bail you out when it blows up
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Dave Ellender
February 4, 2026 AT 03:13Interesting how the religious endorsement and the banking ban exist side by side. It’s like the state says: 'You can believe in it, but don’t touch it with your bank account.' That’s not a policy-it’s a contradiction waiting to explode.
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george haris
February 5, 2026 AT 02:35I’ve seen this in other countries too. When you ban something people actually want, you don’t stop it-you just make it more dangerous. The real win here isn’t the market size-it’s the fact that young Saudis are building their own financial freedom. That’s powerful.
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steven sun
February 5, 2026 AT 18:09so like... if u can buy crypto but cant cash out through ur bank... its like having a magic key that opens no doors. kinda sad but also kinda cool?
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Athena Mantle
February 7, 2026 AT 12:10OMG this is literally the future!! 🌟 I mean, imagine being a young Saudi girl and you're holding ETH while your dad’s still stuck in his bank branch waiting for a teller to print a receipt 😭 But like... the CBDC? Ugh, that’s just Big Brother with better UX. 🤖💔 #CryptoIsFreedom #CBDCIsSurveillance
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carol johnson
February 7, 2026 AT 13:30I can’t believe people are still pretending this is ‘innovation.’ It’s just chaos wrapped in a blockchain hoodie. And the fact that they’re calling it ‘Sharia-compliant’? That’s not religion-that’s marketing. Someone’s making a fortune off this delusion.
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Paru Somashekar
February 9, 2026 AT 00:31The regulatory ambiguity presents a significant risk to market participants. While peer-to-peer mechanisms facilitate transactional activity, they lack the legal enforceability required for financial integrity. It is recommended that individuals maintain meticulous records and consult licensed financial advisors prior to engaging in cross-border digital asset transfers.
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Steve Fennell
February 10, 2026 AT 02:54I’ve worked in fintech across five countries, and this Saudi situation is one of the most fascinating contradictions I’ve seen. Religious approval + banking ban + youth-driven adoption = textbook case of cultural evolution outpacing institutions. They’re not behind-they’re just moving at their own pace.
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Heather Crane
February 10, 2026 AT 09:56I just feel so hopeful seeing this. The youth aren’t waiting for permission-they’re creating their own future. And the fact that Sharia scholars are stepping in? That’s proof this isn’t just tech-it’s a movement. The system might be slow, but the people? They’re already there.
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Catherine Hays
February 11, 2026 AT 17:41This is exactly why the West needs to stop romanticizing rogue markets. You don’t build a stable economy on underground crypto deals. This isn’t freedom-it’s financial anarchy. And someone’s going to get hurt. Then the world will blame Saudi Arabia for being unstable.
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Chidimma Catherine
February 13, 2026 AT 10:01I am from Nigeria and i see so much similarity here. People use p2p to bypass banks here too. The government says crypto is illegal but everyone is doing it. The real issue is not crypto but trust. When people dont trust their banks they find other ways. The solution is not to ban but to rebuild trust
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Nathan Drake
February 13, 2026 AT 16:52The ban isn’t about control-it’s about fear. Fear that if people can move value without state approval, the entire foundation of centralized power starts to crack. The CBDC isn’t progress-it’s a reassertion of dominance under the guise of innovation.
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Ryan Depew
February 15, 2026 AT 10:30Let’s be real-this isn’t a ban. It’s a tax loophole. The government doesn’t want crypto because it can’t tax it properly. Once they get their CBDC, they’ll slap on 30% transaction fees and call it ‘financial modernization.’ Everyone’s just playing along until the real game starts.
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Kevin Pivko
February 17, 2026 AT 10:30You call this growth? It’s just a bubble fueled by desperation. 4 million users? That’s less than 10% of the population. And most of them are probably just flipping memecoins. The real economy? Still runs on oil and bank transfers. Don’t confuse hype with progress.
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Mathew Finch
February 17, 2026 AT 19:14This whole thing is a Western narrative. Saudi Arabia isn’t behind-it’s leading. They’re not banning crypto because they’re scared. They’re rejecting it because they know centralized digital currency is the future. The rest of the world is playing catch-up with outdated ideas.
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Tammy Goodwin
February 18, 2026 AT 15:39It’s wild how culture and policy can be so out of sync. One side says it’s religiously okay, the other says it’s financially dangerous. But the people? They’re just living in the middle. That’s where real change happens-not in boardrooms.
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Andy Simms
February 19, 2026 AT 22:59If you’re a business owner in Saudi dealing with this, your best move is to partner with a UAE-based financial advisor who understands both local law and crypto reporting. Many are doing it successfully-just don’t try to DIY. The penalties are brutal.
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Deepu Verma
January 27, 2026 AT 05:35This is actually kinda inspiring. People are finding ways to thrive despite the system trying to shut them down. It’s not about waiting for permission-it’s about building your own path. Keep going, Saudi crypto folks. You’re ahead of the curve.