Saudi Arabia is preparing a law on cryptocurrency

February 2, 2018

Saudi Arabia is preparing a law on cryptocurrency

Saudi Arabia is preparing a law on cryptocurrency

The Chairman of MCA, the Control of Capital Markets of Saudi Arabia, Mohammed Alkuwait confirmed that the regulators are preparing a bill to regulate cryptocurrency. According to the Chairman of the Board, the ban of cryptocurrencies is unlikely.

Regulators from different countries all pay more attention to the cryptocurrency. While some, like South Korea, a ban, others are inclined in the direction of laissez-faire in economic activity. Saudi Arabia, a country that is not usually associated with cryptocurrencies, however, is closely monitoring the market, although as yet has not taken any measures.

“As in other countries, regulators in Saudi Arabia are watching the development of the cryptocurrency market with great interest… We are still assessing what kind of regulation we will approach. I guess soon we will give you our decision,” said Mohammed Elkowitz, Chairman of the CMA, in an interview with Business Insider.

The bitcoin craze had not yet reached Saudi Arabia to the extent as happened in South Korea or China. However, a number of organizations have expressed the provision associated with cryptocurrencies services to residents of the Kingdom. For example, the company Paxful, claims to have sold more than 10,000 of bitcoins in the state. In December, the Central Bank of Saudi Arabia and the United Arab Emirates launched a pilot test of the international cryptocurrency transfers.

“This is a nascent area and everyone would like to see the development of the region before you engage in it,” says Elkowitz.

The regulators of the country use a similar approach in other areas of financial technologies. For example, regulators have launched a “sandbox” test environment to allow companies to work with innovative technologies and to develop products without worrying about the regulation.

“In fact, companies are given a temporary license for the period of the pilot project. After the test period, we can work together to find solutions for the inclusion of the product in the existing regulatory regime, or to build a new regulatory system in these decisionsĀ»

In the UK has a similar program under the supervision of the office of financial regulation, designed to enable “business to test innovative products, services, business models and delivery mechanisms in the real market with real buyers.”

Saudi Arabia, in its efforts to deviate from Energietechnik economic policy, is taking steps to attract foreign investors and encourages the development of the market of raising capital.