Saudi Arabia’s Changing Mindset on Cryptocurrency: Deregulation, Innovation, and Strategic Reserves Saudi Arabia quickly is diversifying its approach to cryptocurrencies, standing on the axes of cautious regulation and bold innovation with strategic investment.
Since banks have been prohibited by the Saudi central banking authority from trading in cryptocurrencies due to Sharia non-compliance, grassroots adoption has sky-rocketed, with some 19% of Saudis now holding a stake in cryptocurrencies.
With daily trading volumes of north of $1.5 billion, moving on to be the fastest-growing crypto market in the region. The Saudi Central Bank (SAMA) has irrevocably altered the scene with its nearly $60 billion investment in Bitcoin, shared among the MicroStrategy shares, thus becoming the first major exposure of the Kingdom to digital assets for reserve purposes.
This act joins a series of acquisitions by sovereign wealth funds and underscores a gradual departure from traditional stores of value such as gold and dollars to a composite reserve system inclusive of digital assets. Meanwhile, Saudi Arabia is heavily investing in blockchain technology to revamp supply chains and lure global talent in fintech, as envisaged by Vision 2030.
The banking industry and government agencies are now running pilot programs using blockchain for logistics, finance, and real estate. With HODL Riyadh set to be held in December 2025, the Kingdom will now cement its position as an ambitious upstream crypto and blockchain hub, attracting global Web3 talent for the event.
Regulatory clarity is evolving, with new crypto legislation in 2025 expected to attract exchanges and institutional investors while protecting consumers. SAMA also explores CBDCs and has engineered leadership of digital asset initiatives. In summary: Saudi Arabia is moving from cautious oversight to active participation in the digital asset economy-investing in Bitcoin, financial assistance in blockchain pilots, establishing comprehensive regulations. These measures make the Kingdom a prospective central power.
