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Saudi Arabia Banking Ban on Crypto Transactions: What It Means for Users and Businesses

Robert Colt Jan, 23 2026

Despite having one of the fastest-growing crypto markets in the Middle East, Saudi Arabia has made it nearly impossible for its citizens to use banks for cryptocurrency transactions. The rules aren’t about banning crypto itself-they’re about cutting off the financial pipeline. If you want to buy Bitcoin, trade Ethereum, or run a crypto business in Saudi Arabia, you can’t use your local bank account. Not directly. Not easily. And definitely not legally through official channels.

How the Ban Works

The Saudi Central Bank, known as SAMA, has been clear since 2018: banks are forbidden from handling any crypto-related transactions. This includes deposits, withdrawals, wire transfers, or even opening accounts for crypto exchanges. The ban isn’t a suggestion-it’s a hard rule enforced by regulators. If a bank in Riyadh, Jeddah, or Dammam processes a payment to Binance, Kraken, or any other crypto platform, it risks fines, sanctions, or losing its license.

This isn’t just about keeping money safe. It’s about control. The government doesn’t want digital currencies interfering with the Saudi Riyal’s dominance or bypassing its financial oversight. Unlike the UAE or Bahrain, which built licensing systems for crypto firms, Saudi Arabia chose to wall off its banking system entirely. That means no direct link between your bank and your crypto wallet.

But People Are Still Buying Crypto

Here’s the twist: crypto adoption in Saudi Arabia is exploding. In 2024, the market hit $23.1 billion in value. Over 4 million Saudis-about 11.4% of the population-own digital assets. Transaction volumes jumped 153% between July 2023 and June 2024, crossing $31 billion. That’s not small-time trading. That’s institutional-level activity happening outside the banking system.

How? People are using workarounds. Peer-to-peer (P2P) platforms like Paxful and LocalBitcoins are popular. Traders use international bank accounts, crypto-friendly payment processors, or even cash deposits through third-party agents. Some businesses rely on offshore entities to move money. Others use stablecoins like USDT to bridge between fiat and crypto without touching a Saudi bank.

The result? A thriving underground crypto economy. It’s not illegal to own Bitcoin in Saudi Arabia. It’s illegal to use your bank to buy it. That gray zone is where most activity lives.

What About Businesses?

For crypto startups, the ban is a nightmare. No bank account means no payroll. No way to pay suppliers. No way to receive revenue from clients without jumping through hoops. Many Saudi-based crypto firms operate out of Dubai or Singapore just to access banking services. Others set up shell companies abroad and route funds through complex layers of intermediaries.

Tax compliance is another headache. The government taxes crypto as an asset. Businesses pay 20% corporate income tax, 15% capital gains tax, and 2.5% zakat. But if you can’t deposit profits into a local bank, how do you prove you paid taxes? How do you file returns? Many rely on foreign accountants and international financial reporting systems-adding cost and complexity.

A futuristic control room displays Saudi Arabia's digital riyal CBDC while underground crypto trades glow nearby.

The Blockchain Paradox

Here’s where it gets confusing. While banks can’t touch crypto, the Saudi government is deeply invested in blockchain technology. In 2024, Saudi Arabia joined the mBridge project-a pilot with China, Thailand, Hong Kong, and the UAE-to test a central bank digital currency (CBDC). SAMA is actively developing its own digital riyal, testing it for cross-border payments and financial efficiency.

This isn’t a contradiction. It’s a strategy. The government wants digital money-but only if it controls it. A state-backed CBDC can be tracked, taxed, and regulated. Bitcoin? Not so much. That’s why the ban exists: to keep decentralized crypto out while bringing government-controlled digital currency in.

Religious Approval, Financial Blockade

In 2023, a top Saudi religious authority issued a fatwa stating that Bitcoin and other cryptocurrencies are permissible under Sharia law. The reasoning? They function as a medium of exchange, not gambling or speculation. This was a big deal. It removed one major cultural barrier to adoption.

But religion doesn’t override banking law. So now you have a society where many Muslims believe crypto is halal, yet the banks won’t touch it. That tension is growing. Young Saudis-63% of the population are under 30-are more tech-savvy and open to innovation than previous generations. They’re using crypto anyway. The gap between religious acceptance and financial restriction is widening.

A young entrepreneur holds a crypto wallet as a religious leader approves, while a giant SAMA logo looms above.

Legal Risks and AML Concerns

Saudi Arabia’s Anti-Money Laundering Law (AML) and Counter-Terrorism Financing Law (CFT) don’t mention crypto by name. But they define “funds” broadly to include anything transferred electronically. That means crypto transactions could still fall under these laws. Authorities can investigate suspicious activity-even if it’s happening outside the banking system.

The Communications and Space Technology Commission (CST) monitors digital activity closely. While they don’t regulate crypto directly, they track tech trends aligned with Vision 2030. That means if your crypto platform is popular, it’s already on their radar.

For individuals, the risk is low. Most people trade small amounts privately. But for businesses, the legal uncertainty is real. One day, you’re using P2P platforms. The next, you’re flagged for unusual transactions. There’s no clear rulebook.

What’s Next?

No major crypto law is expected before 2028. The government is watching. The market is growing. Religious leaders are approving. The younger generation is demanding change. But SAMA isn’t rushing. Their priority is financial stability, not innovation.

The most likely path forward? A two-tier system. Individuals might get limited access to regulated crypto platforms-think licensed exchanges that operate under strict oversight. Businesses? Still locked out unless they partner with foreign entities. CBDCs will roll out first. Decentralized crypto? Still on the outside.

For now, Saudi Arabia’s crypto scene is like a high-speed race with no track. People are moving fast-but they’re doing it on dirt roads, with no guardrails, and no official permission.

What Should You Do?

If you’re an individual trader: You can still buy crypto. Use P2P platforms. Stick to well-known exchanges. Avoid large transfers that trigger bank flags. Keep records. Don’t assume you’re invisible.

If you’re a business owner: Don’t try to force a Saudi bank account. Set up operations offshore. Use international payment gateways. Work with legal advisors who understand both Sharia compliance and cross-border finance.

If you’re waiting for the ban to lift: Be patient. Change will come-but slowly, and on the government’s terms. The future of crypto in Saudi Arabia won’t be about freedom. It’ll be about control.

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9 Comments

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    Taylor Mills

    January 24, 2026 AT 20:23
    lol so they ban banks but everyone's still buying crypto? classic saudi move. they want control but can't stop tech. they're like a dad trying to ban instagram but his kid just uses vpn and tiktok.
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    Arielle Hernandez

    January 25, 2026 AT 23:31
    The regulatory paradox here is fascinating: a state that actively invests in blockchain infrastructure while simultaneously suppressing decentralized financial instruments reveals a profound tension between technological modernization and centralized authority. This is not anti-innovation-it is anti-decentralization.
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    David Zinger

    January 27, 2026 AT 03:02
    Why are we even pretending this is about financial stability? It's about power. The royals don't want people owning assets they can't track or tax. And don't give me that 'CBDC is progress' nonsense-it's surveillance with a blockchain logo 😒
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    Nathan Drake

    January 28, 2026 AT 06:09
    It's ironic. They ban crypto because it's uncontrolled, yet they're building a digital riyal that can monitor every transaction. The real fear isn't crypto-it's loss of control. People will always find ways to exchange value. History proves that. The question is: will they ever learn to trust their own people?
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    Nadia Silva

    January 28, 2026 AT 09:05
    I'm from Canada. We let crypto thrive with light regulation. Saudi Arabia's approach is archaic. You don't stop innovation by banning banks-you create black markets. This is how empires collapse. Slowly. With bureaucracy.
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    Mike Stay

    January 29, 2026 AT 21:26
    The cultural dimension is often overlooked. A religious fatwa permitting crypto alongside a state-enforced banking ban creates a cognitive dissonance among young Saudis. This isn't just a financial policy-it's a generational rift. The youth are not just adopting crypto; they're rejecting institutional hypocrisy. And they're doing it quietly, efficiently, and with zero loyalty to the system.
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    steven sun

    January 31, 2026 AT 20:07
    bro i bought my first btc with cash from a dude in jeddah parking lot. no bank. no paperwork. just a handshake and a qr code. this is the real economy. the one the government can't touch. they can ban banks but they can't ban people 😎
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    Ryan Depew

    February 2, 2026 AT 09:31
    The 15% capital gains tax is a joke if you can't even deposit your profits. How do you pay taxes on something the system won't acknowledge? They want the revenue but not the responsibility. Classic.
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    Heather Crane

    February 2, 2026 AT 22:23
    I think this is actually hopeful. People are finding ways to thrive despite the system. That’s resilience. That’s human ingenuity. The ban might slow things down, but it won’t stop them. And when change comes, it’ll be because of the people-not the regulators. Keep going, Saudi crypto pioneers 🙌

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