After the spread of talk about it, many are wondering: Is Bitcoin legal in Saudi Arabia ? Can it be used as a substitute for regular paper currency? These and other questions interested in digital currencies want to know the answers to them, especially after the prices of these currencies have increased exaggeratedly in the past few years after they were worth only a few dollars at the beginning of their work, and will the future of financial transactions in the world depend on currencies digital?
What is bitcoin?
Bitcoin is a digital currency known in English as Bitcoin, that currency was created by Satoshi Nakamoto, and this name is not a real name for a person, but a pseudonym used for the developer or developers of this currency, which was created in 2008. In 2009, its application was released Open source software system. Bitcoin differs from the regular currencies known in all countries of the world as a decentralized currency, meaning that it is not subject to the supervision of any government agency such as banks or central banks responsible for banking systems in all countries of the world.
In determining its market value, it depends on the confidence of its dealers and traders. It is sent through one person to another via the Bitcoin network via an electronic method known as the “peer-to-peer” method, where it is exchanged between people directly without the presence of an intermediary such as banks, for example, to exchange that currency. Bitcoin is created through a process known as “mining” which is the use of custom types of high-performance computers with the ability to withstand high pressure in order to perform the mining process that consumes very large amounts of electricity in order to mine that currency. This process has been called mining in analogy to the process of extracting minerals from the ground, which requires very great efforts.
Is Bitcoin legal in Saudi Arabia?
Bitcoin in Arab countries in general is not very well known, but it has begun to spread relatively recently in many Arab countries, where it was used in one of the tea bars in Jordan, as well as in a restaurant in Dubai, and in Kuwait there is also one of the malls that Dealing with this electronic currency is accepted. The matter is different in the Kingdom of Saudi Arabia, where the Standing Committee for Awareness and Warning against the Activity of Trading in Securities in the Foreign Exchange Market (Forex) of the Saudi Central Bank, which was established based on the order of the Custodian of the Two Holy Mosques , announced that trading or investing in digital currencies, including Bitcoin, is illegal. legal in queenAnd that these currencies have not been approved by any of the government agencies in the Kingdom. The committee warned all citizens and residents in the Kingdom against dealing with the parties on the Internet and social media platforms that claim that they are licensed by government agencies, as no party grants a license to deal with these agencies, and the invitations made to individuals with promises of profit The rapid and huge financial gains are not without security, regulatory and market risks, as individuals dealing with these entities sign fake contracts and requests to transfer funds to unknown parties. This exposes individuals to fraud and scams. Also, the use of that currency in the Kingdom adds to it the suspicion of being used as a means of illegal financial transactions.
Is bitcoin halal?
Since the existence of the bitcoin currency is new in the whole world, many people interested in the field of digital currencies want to know the ruling on trading and dealing with this currency, and whether it is an award or is it forbidden to use it, and many of the authorities concerned with the fatwa answered that the bitcoin currency is not permissible to be traded and dealt with. From the legal point of view, for a number of reasons, the most important of which are:
There is no legal system that recognizes this currency as an acceptable medium for trading between people.
Bitcoin has no tangible assets to cover it, nor does it need any controls or conditions for its issuance, and it does not have a central system that financially approves it.
Bitcoin is not regulated by financial authorities because it is based on unsupervised online trading .
Bitcoin involves a great deal of risk because its value or price is not fixedly determined, and there are no known factors or controls to estimate its value, which makes it very vague and contains ignorance.
The circulation of that currency without controls from the financial and banking authorities approved in the world greatly affects the value of the local and international currencies in which digital currencies are traded, which weakens the national economy of the country.
Investing in Bitcoin is not a safe type of investment because of the high degree of risk in it, whether financial or security risks, as the sites related to that currency do not include a degree of security that can be reassured, but are easily hacked by hackers.
These currencies are often used in illegal transactions such as money laundering and selling prohibited things because they are prohibited in many countries of the world.
This currency does not meet the conditions and controls required in order to consider it a “currency” and its circulation, because it is unknown, and it includes the meanings of hidden fraud and ignorance in both the standard of obtaining it and the method of its disbursement, which leads to confusion among those dealing with it, and it was paralyzed by fraudulent money prohibited by law. deal with it.
Dealing in these currencies is very similar to gambling and leads to the ruin of money individually for individuals dealing with them, and collectively at the state level.
Bitcoin price in Saudi Arabia
A lot of people interested in cryptocurrency in Saudi Arabia are looking for the value of Bitcoin in relation to the Saudi riyal. Before getting to know its approximate value, it should be noted that the value of Bitcoin is not permanently fixed, as it depends on speculation such as trading in securities - the stock exchange , for example, but the most prominent difference between speculating in digital currencies and speculating in stocks traded in the stock market is that the latter is subject to control And it is dealt with based on standards and rules and has a degree of security, unlike Bitcoin, whose value changes down and up in one hour dozens of times, and it is not possible to predict or identify the reasons that lead to its increase or decrease in value. In general, the price of Bitcoin in mid-March 2021 reached $ 55,000, or more than 206,000 Saudi riyals.
And here, we have come to the conclusion of the article; Through it, we got to know the answer to the question: Is Bitcoin legal in Saudi Arabia, as we got to know that currency in detail, the idea of its work, the ruling on dealing with it and trading it in Islamic Sharia, and the price of Bitcoin in Saudi Arabia.
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