Saudi Arabia Advocates Cautious Approach to Cryptocurrency Regulation

Saudi Arabia’s Central Bank and Capital Market Authority stress a “measured approach” to cryptocurrency innovation, balancing technological progress with financial system stability as of June 2025.

The regulatory stance influences regional leadership, aligning Saudi Arabia closely with UAE’s crypto frameworks, aiming for controlled market growth and technological adoption.

SAMA Appoints AlZahrani to Drive Crypto Regulation

Saudi Arabia’s regulatory entities, SAMA and CMA, facilitate the crypto regulatory shift. Appointed in July 2024, Mohsen AlZahrani leads SAMA’s Virtual Assets initiatives, emphasizing a measured regulatory approach to fintech innovations.

The Kingdom’s position advocates caution, avoiding outright bans while engaging with global trends and regional successes such as the UAE’s VARA regime. Saudi leaders prioritize balanced innovation and financial stability.

Saudi Strategy Enhances Crypto Market Confidence

Saudi Arabia’s strategy aims for stability while fostering innovation, encouraging crypto market expansion within controlled parameters. The regulatory approach boosts investor confidence, paralleling trends seen across the GCC.

Financial outcomes include rising transaction volumes and growing retail interest. Expert analysis predicts sustained crypto trading activity, potentially attracting institutional investors through strategic dialogues with global exchanges.

Ripple and IBM Partnerships Drive Evolution Since 2019

Since 2019, Saudi Arabia’s partnerships with Ripple and IBM underscore a gradual regulatory evolution. Regional comparisons to UAE and Bahrain emphasize a careful balance between innovation and compliance.

Expert analysis suggests Saudi Arabia’s regulatory approach mirrors successful frameworks, anticipating enhanced market dynamics. The Kingdom’s emphasis on regulatory clarity is expected to fuel robust technological advancements and cross-border projects.

Mohsen AlZahrani from SAMA highlighted, “Our approach to crypto innovation is a balanced one, focusing on financial stability while exploring new technological advancements.”