A prominent Saudi economist has called for Gulf Arab states to establish a unified regulatory framework for cryptocurrencies, arguing that the region needs a coordinated approach to the growing use of digital assets as a payment tool.
Despite Saudi Arabia’s strict stance against cryptocurrency transactions, other Gulf nations, such as the United Arab Emirates (UAE), have introduced regulatory measures to govern digital asset usage.
Saudi Economist Calls for Unified Crypto Approach
Speaking to AGBI, Ihsan Buhulaiga, a former member of the Saudi Shura Council and a noted economist, stressed the urgency of a regulatory roadmap for Gulf Cooperation Council (GCC) nations.
“Saudi Arabia and other countries in the region need to think about the rapid developments in this type of currency. They need a roadmap in this respect,” Buhulaiga said.
He urged GCC countries, which include Saudi Arabia, the UAE, Kuwait, Qatar, Bahrain, and Oman, to collaborate on crypto regulations, highlighting the disparity in policies across the region.
“What one GCC country does not allow can be done in another. If I cannot invest in cryptocurrencies in Saudi Arabia, I will take my money and go to the UAE or Bahrain,” Buhulaiga wrote in Al Mal newspaper last week.
He further emphasized that digital currencies are gaining traction worldwide, predicting continued growth due to U.S. President Donald Trump’s pro-crypto policies, including the potential integration of digital assets into the Federal Reserve’s reserves.
The discussion on cryptocurrency adoption has intensified in Saudi Arabia, particularly following Trump’s election victory in November.
On the opposite side of the debate, Abdul Rahman bin Nahi, a frequent columnist in Saudi media, reiterated the government’s long-standing opposition to crypto, citing religious, financial, and security concerns.
“Islam is based on transparency and fairness in financial dealings and the need to avert big risks,” bin Nahi wrote in Al Mal newspaper.
“Given their unstable nature and widespread speculation, cryptocurrencies could cause economic and social damage.”
He also noted that digital assets contradict Islamic values, which emphasize financial stability and public protection.
The Saudi government has prioritized combating money laundering and terrorist financing, and bin Nahi warned that cryptocurrencies, with their anonymous and unsupervised transactions, pose significant financial security risks.
UAE to Attract Crypto Ventures Amid EU’s Stringent MiCA Regulation
As reported, the UAE is poised to become a key destination for crypto and stablecoin ventures seeking refuge from the European Union’s (EU) newly implemented Markets in Crypto-Assets (MiCA) regulation.
The regulatory framework, which took full effect on December 30, is creating significant challenges for crypto firms within the 27-member bloc, prompting many to consider relocating, according to industry experts.
Among its stringent requirements, small stablecoin issuers must hold 30% of their reserves in low-risk EU-based commercial banks, while major players like Tether face a mandate to maintain 60% or more in similar institutions.
More recently, the United Arab Emirates also issued regulatory approval to a new stablecoin, pegged to the UAE dirham.
Dubbed ‘AE Coin’, the cryptocurrency is positioning itself as a stablecoin that is fully backed by reserves held within the UAE.
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