Saudi Arabia Compliance Report

Generated 2026-09-22

Comprehensive Framework

Regulatory Overview

Regulatory Status: Dedicated crypto/VA legislation, licensing regime, active enforcement
Key Regulator(s): Saudi Central Bank, Standing Committee
Primary Legislation: enabled by the 2022 Law of Payments and Payment Providers, Royal Decree M/20 (AML/CFT): General transaction reporting. (https://zipmex.com/, Royal Decree No. M/1 dated 21/2/1416H, The Law of Tradenames, also issued by Royal Decree No. (M/83) dated 19/3/1446H,, Article (15) of the Commercial Register Law provides for suspension of registrat, The Civil Status Law, the Residency Law, and the Commercial Register Law collect, Royal Decree No. M/83, Implementation of the Provisions of the Commercial Register Law and the Law of T
Travel Rule: Adopted — Threshold: Implemented

Key Facts

aml Technical Compliance: Saudi Arabia was rated "Largely Compliant" on the majority of FATF Recommendations. For Recommendation 15 (New Technologies/VASPs), Saudi Arabia was rated Partially Compliant, reflecting the absence of a dedicated VASP framework at the time of evaluation. Effectiveness: Saudi Arabia was rated "Moderate" on most Immediate Outcomes, with gaps identified in supervision of DNFBPs (Designated Non-Financial Businesses and Professions) and in beneficial ownership transparency. Follow-Up Reports: Saudi Arabia remains in regular follow-up; subsequent follow-up reports have addressed technical compliance gaps. Specific ratings from the latest follow-up report should be verified against FATF's official website (fatf-gafi.org). No Licensed VASPs: As of Q2 2024, SAMA has not licensed any standalone VASP. No public registry exists. This is a critical market entry barrier. No Dedicated Framework: No distinct crypto-asset law or standalone virtual asset regulation has been published. Crypto activities fall under the general financial AML framework by inference. No Public Application Process: No public application forms, processing timelines, or pre-application requirements exist for VASP licensing. Engagement via SAMA Fintech Hub may be required. No Tax Clarity: No ZATCA guidance on VAT, Zakat, or corporate income tax treatment of crypto transactions exists. No Public Enforcement Record: No public enforcement actions against VASPs have been documented, creating uncertainty regarding enforcement risk.
general No primary crypto-securities law; relevant are CMA's general securities rules and SAMA's “Anti-Money Laundering and Counter-Terrorism Financing Rules for Financial Institutions Engaged in Virtual Assets Activities” (2023). Planned but unconfirmed STO rules via CMA (announced 2022). Search results provide no official URLs for Saudi-specific legislation; see cited sources for details (e.g., CMA announcements via secondary reports). For official CMA/SAMA guidance, consult cma.org.sa or sama.gov.sa directly, as results lack direct links to binding texts.
licensing Custodial License Requirements: None exist, as no licenses are issued for cryptocurrency practices; entities claiming otherwise face legal action. Segregation of Client Assets Rules: No rules apply, given the absence of recognized crypto custody services. Insurance/Bonding Requirements: Not mandated, as crypto activities are unlicensed and prohibited. Cold Storage Mandates: No mandates, due to the overall ban on public cryptocurrencies. Qualified Custodian Definitions: No definitions provided in regulations, as crypto custody is not authorized. No standardized licenses: There is no broadly public VASP (Virtual Asset Service Provider) or crypto-specific license for retail exchanges, custody, or payment processing; activities like crypto trading, wallet services, or brokerage fall outside approved perimeters without explicit regulatory approval. Limited permitted activities: Under SAMA's 2023 Payment Service Provider Regulations (enabled by the 2022 Law of Payments and Payment Providers), related services such as digital banking, electronic payment processing, P2P lending/investment, asset/wealth investment, crypto/blockchain applications, and BNPL may qualify indirectly, but not pure crypto trading or custody. Exchanges and custody: Require entry via SAMA's Regulatory Sandbox as the primary (and currently only recognized) route for testing and potential approval; full operations demand ongoing compliance verification.
securities The Capital Market Authority (CMA) oversees the regulatory framework for cryptocurrencies and digital assets in Saudi Arabia, ensuring compliance with securities laws and anti-money laundering (AML) standards. The CMA has issued regulations that categorize certain digital assets as securities, subjecting them to the same licensing and disclosure requirements as traditional securities. Issuers of digital asset securities must obtain a license from the CMA, demonstrating compliance with capital adequacy, disclosure, and market conduct requirements. Digital asset service providers are required to implement robust AML and Know Your Customer (KYC) procedures, in line with the directives from the Anti-Money Laundering Committee. The CMA has the authority to enforce penalties, including fines and suspension of licenses, against entities that violate regulatory requirements related to digital assets. Digital asset transactions are subject to Saudi Arabia's corporate income tax regime, with specific guidance provided for crypto-related income. Current regulations may not fully address emerging technologies such as decentralized finance (DeFi) platforms, posing potential regulatory gaps and associated risks. Capital Market Authority | Home
status Cryptocurrency is not explicitly legalized or banned in Saudi Arabia, but the Saudi Central Bank (SAMA) has issued warnings against trading digital assets and no licensed cryptocurrency exchanges exist in the Kingdom as of 2025–2026. SAMA is the primary regulator for financial services, including payment systems and digital asset-related activities, operating under its Law issued by Royal Decree No. (M/36) dated 11/4/1442H Implementation of the Provisions of the Commercial Register Law and the Law of Tradenames | SAMA Rulebook. No entity has been granted a license to operate a cryptocurrency exchange or provide digital asset trading services in Saudi Arabia; SAMA has publicly stated that it does not license such activities. The practical reality is that direct crypto trading is effectively restricted, though SAMA-regulated payment service providers can operate under specific rules, and SAMA continuously monitors financial activities through circulars and rulebooks. Businesses face significant compliance burdens around customer identity, address verification, and account opening rules, but no crypto-specific regulatory regime exists, creating legal uncertainty. The Saudi Central Bank (SAMA), also known as the Saudi Arabian Monetary Authority, is the principal financial regulator in the Kingdom, operating under its Law issued by Royal Decree No. (M/36) dated 11/4/1442H Implementation of the Provisions of the Commercial Register Law and the Law of Tradenames | SAMA Rulebook. SAMA maintains a comprehensive Rulebook (https://rulebook.sama.gov.sa/en) that governs financial institutions, including banks, payment companies, and money changers, with rules covering account opening, customer due diligence, and operational conduct Residence and Work Addresses | SAMA Rulebook. The Commercial Register Law, issued by Royal Decree No. (M/83) dated 19/3/1446H, replaces the previous Commercial Register Law (Royal Decree No. M/1 dated 21/2/1416H) and entered into force 180 days after publication in the Official Gazette, imposing registration and compliance obligations on all commercial entities including financial institutions Implementation of the Provisions of the Commercial Register Law and the Law of Tradenames | SAMA Rulebook.
travel rule Whether Saudi Arabia has enacted specific legislation or regulatory guidance for the Travel Rule An effective implementation date for Saudi Arabia Applicable threshold amounts for transactions Which types of VASPs are covered under Saudi Arabia's framework URLs to relevant Saudi Arabian legislation or regulatory guidance

Sources

This report is AI-generated from publicly available regulatory sources. Last updated: 2026-09-09. View full profile