Saudi Arabia is one of the most important markets for cryptocurrency and Binance, the world’s largest crypto exchange, is eagerly awaiting the possible introduction of “high-level” regulation for digital currencies in the country this year. Bandar AlTunisi, Head of Development at Binance in Saudi Arabia, said that the crypto industry has been growing steadily in the region over the past seven years.
According to US blockchain analysis firm Chainalysis, crypto transactions in the Middle East increased by 12% year-on-year to reach $31 billion in July 2023. AlTunisi expressed his hope that the Saudi authorities will soon announce their regulatory framework for crypto, which he said will be a “huge catalyst for growth in the industry”.
It could be tomorrow, it could be in a month’s time, [but] once they’re ready, they will move quickly, which is what excites us about the Saudi market. I am hopeful about this year, but [it] is dependent on a lot of different factors, he said.
Bader Al Kalooti, Head of Binance Middle East, Africa and Southern Asia (MEASA) and Turkey, said that Binance is ready to comply with any regulations that the Saudi government will impose, as it has done in other jurisdictions.
According to AlTunisi, it is still very early. In relative terms, this industry is nascent. Typically, disruptive technology rolls out first, and then it takes a while to demonstrate a product-market fit—showing that people want this technology—before regulations catch up.
Binance’s Role In Saudi Cryptocurrency Regulation
Several Saudi government bodies are involved in studying the potential regulation of crypto, including the Saudi Central Bank (SAMA), the Ministry of Communications and Information Technology (MCIT), which will oversee the blockchain aspect, and the Capital Markets Authority (CMA).
In 2018, Saudi Arabia launched the Financial Sector Development Programme, which aims to diversify the economy and develop the financial sector. The programme could also include the regulation of cryptocurrency, as part of the vision to make Saudi Arabia a leading global financial hub. AlTunisi said that once the regulation is announced, there will be a period of learning and adaptation for both the regulators and the industry players.
AlTunisi said that Saudi Arabia is a priority market for both crypto in general and Binance in particular, as it has a large and tech-savvy population, a high demand for digital assets, and a supportive government. He also said that Binance has a strong presence and reputation in the country, as it is the only major exchange that has a dedicated team and office in Saudi Arabia.
There is no other major exchange that has boots on the ground in Saudi in the way Binance does, […] Saudi is one of those places [where] once they move, they move big/. We really anticipate that there is going to be movement soon, and once they do, it is going to be a huge catalyst for growth in the industry, said AlTunisi.
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