Despite having one of the fastest-growing crypto markets in the Middle East, Saudi Arabia has locked its banks out of cryptocurrency transactions. If you’re trying to buy Bitcoin, sell Ethereum, or run a crypto business in the Kingdom, you can’t use your local bank account. Not for deposits. Not for withdrawals. Not even for paying taxes. The ban isn’t a suggestion-it’s a hard rule enforced by the Saudi Central Bank (SAMA), and it’s been in place since 2018.

How the Ban Works

Saudi banks are legally barred from handling any transactions involving cryptocurrencies. That means if you buy $10,000 worth of Bitcoin on Binance or Kraken, you can’t wire the money from your Al Rajhi or Riyad Bank account. You can’t cash out your crypto profits into your checking account either. The restriction applies to all licensed financial institutions in the country, including credit unions and payment processors tied to banks.

This isn’t just about blocking payments. It’s about isolation. Crypto traders and businesses are forced to operate outside the formal financial system. People use peer-to-peer platforms, international money transfer services, or even cash-based deals to move funds. Some use offshore bank accounts in the UAE or Singapore. Others rely on crypto-to-crypto swaps or local OTC desks that operate in gray areas.

The ban was formalized after a 2018 warning from SAMA and the Standing Committee for Awareness on Dealing in Securities Activities. In 2019, the Ministry of Finance doubled down, stating that cryptocurrencies are “not recognized or regulated” by any Saudi authority. Since then, no new laws have been passed to change that. The rules remain the same: banks stay out. Crypto stays unregulated.

Why the Ban Exists

Saudi authorities aren’t against digital money-they’re against uncontrolled digital money. Their main concerns are money laundering, terrorist financing, and financial instability. The Anti-Money Laundering Law (AML) and Law on Combating Terrorist Financing (CFT) don’t mention crypto by name, but they define “funds” broadly enough to include digital assets. That means if you’re moving crypto and it’s linked to suspicious activity, you could still be investigated.

The government also fears losing control over monetary policy. If people start using Bitcoin as a substitute for the Saudi Riyal, it could weaken the central bank’s ability to manage inflation, interest rates, and currency value. That’s why SAMA is actively developing its own central bank digital currency (CBDC), called the mBridge project, in partnership with the UAE, China, and others. They want digital money-but under their rules, not yours.

There’s also a cultural layer. While Islamic scholars have issued fatwas saying Bitcoin is Sharia-compliant, the state hasn’t followed suit. Religious permission doesn’t override financial regulation. The result? A society where crypto is religiously acceptable but financially restricted.

What’s Happening on the Ground

Despite the ban, crypto adoption in Saudi Arabia is exploding. In 2024, the market was valued at $23.1 billion. By 2025, it’s expected to hit $498.2 million in revenue, with 7.4 million users-about 11.4% of the population. That’s over 4 million people owning crypto, even though they can’t use their banks to buy or sell it.

Transaction volumes jumped 153% between July 2023 and June 2024, reaching $31 billion. Most of this activity comes from individuals and small businesses using decentralized platforms. Many use P2P apps like Paxful or LocalBitcoins to trade SAR for BTC. Others use crypto ATMs, though they’re rare and often require ID verification.

Businesses face even bigger hurdles. A crypto startup in Riyadh can’t open a business bank account. They can’t pay employees in fiat. They can’t pay for cloud hosting or software subscriptions using local banking. Many hire accountants in Dubai or use crypto-friendly payment gateways that route funds through non-Saudi entities. Some even register their companies offshore just to survive.

How People Get Around the Ban

The ban hasn’t stopped crypto-it’s just pushed it underground. Here’s how Saudis are making it work:

• Peer-to-peer trading: Platforms like LocalBitcoins and Paxful connect buyers and sellers directly. You pay cash, use a friend’s bank account, or send money via Western Union.
• International transfers: Many use Wise, Revolut, or PayPal to move money to exchanges outside Saudi Arabia. This often triggers bank flags, but people still do it.
• Crypto ATMs: A few exist in Riyadh and Jeddah, mostly operated by private companies. They’re slow, expensive, and require ID, but they’re legal.
• OTC desks: Over-the-counter traders act as middlemen. You give them cash or a bank transfer (through a third party), they send you crypto. They charge 5-10% fees.
• Offshore banking: Some wealthy investors open accounts in the UAE, Switzerland, or Singapore just to move crypto funds.

None of these are ideal. They’re all slower, more expensive, and riskier than using a local bank. But they’re the only options available.

Taxes and Legal Risks

Here’s a twist: while you can’t use banks to trade crypto, you still owe taxes on it. The Saudi government treats crypto as an asset, not currency. If you sell Bitcoin for a profit, you might owe 15% capital gains tax. Businesses pay 20% corporate tax and 2.5% zakat.

But here’s the problem: how do you pay taxes if your bank won’t touch crypto? Many people report income manually, pay cash to tax agents, or use third-party accounting firms in Dubai. There’s no official system for crypto tax payments. That creates a massive compliance gap. The government knows this. They just haven’t built a solution yet.

Legally, owning crypto isn’t illegal. Trading it isn’t illegal. But doing it through a Saudi bank? That’s a violation. If your bank catches you, they can freeze your account. If you’re a business, you could face fines or shutdowns. There’s no clear legal pathway.

The Paradox: Crypto Growth vs. Banking Control

Saudi Arabia is caught in a contradiction. On one hand, it’s one of the most active crypto markets in the region. On the other, it’s one of the strictest when it comes to banking access.

The government wants blockchain innovation-it’s investing billions in CBDCs, smart contracts, and digital infrastructure. Vision 2030 includes plans to become a tech hub. But it doesn’t want decentralized finance. It doesn’t want people bypassing the Riyal. It wants digital money-but only if it’s theirs.

This tension is growing. Over 63% of Saudis are under 30. They’re tech-savvy, global-minded, and used to digital payments. They don’t understand why they can’t buy crypto like they buy groceries online. The younger generation is pushing for change.

What’s Next?

Don’t expect the ban to lift soon. SAMA and the Capital Market Authority (CMA) have shown no signs of relaxing their stance. No legislation is expected before 2027 or later. The government prefers to watch, wait, and test-especially with its CBDC pilot.

But the market won’t wait. With $45.9 billion projected in market value by 2033, pressure will keep building. Eventually, the state will have to choose: continue blocking banks and risk driving activity further underground, or create a regulated framework that lets banks participate-under strict controls.

Until then, Saudi crypto users are playing a high-stakes game of hide-and-seek with the financial system. They’re not breaking the law by owning crypto. But they’re bending every rule to make it work.

Bottom Line

The Saudi banking ban on crypto isn’t about stopping crypto. It’s about controlling it. The government allows growth-but only if it stays outside the banking system. For users, that means more hassle, higher costs, and more risk. For businesses, it means operating in legal limbo.

If you’re in Saudi Arabia and you want to trade crypto, you can. But you’ll have to do it the hard way. No bank support. No safety net. No official path. Just you, your wallet, and a workaround.

And until the rules change, that’s the reality of crypto in Saudi Arabia.