RIYADH — The Ministry of Finance (MOF) has warned against making transactions or investments in virtual currencies, including crypto currencies, as they are not recognized currencies or assets in the Kingdom.

“They are outside the regulatory framework and are not traded by financial institutions locally. Such crypto currencies have been associated with fraudulent activities and attract suspicion of use in illegal and illegitimate financial activities in addition to their high-investment risks related to frequent price fluctuations,” the ministry said in a statement.

“Virtual currencies have appeared claiming their relationship to financing of projects, activities or investment in the Kingdom and using the name of the national currency of KSA (Saudi riyal), or KSA’s emblem (two crossed swords with a palm tree) for misleading marketing of its activities such as (Crypto Riyal) or other virtual currencies.

The ministry also warned that any use of the Kingdom’s name, national currency, or emblem by any entity for marketing of virtual or digital currencies will be subject to legal actions by the competent authorities in the Kingdom. — SG/SPA