Saudi Arabia Banking Ban on Crypto Transactions: What You Need to Know in 2026

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.