Zahrani to Head Virtual Assets and Digital Currency Project of Saudi Arabia
Saudi
Arabia's central bank has reportedly appointed Mohsen Al Zahrani as head of the
bank's virtual assets and digital currency project. The emergence of the
United Arab Emirates (UAE) as the regional crypto hub is believed to have
pushed authorities in Saudi Arabia to consider formally regulating
cryptocurrencies.
Saudi Arabia Changes Stance on Crypto
According
to Bloomberg, Mohsen Al Zahrani has been appointed to lead the Saudi central
bank's virtual assets and digital currency project. The appointment of Al
Zahrani is an indication that the country, which banned cryptocurrencies four
years ago, has changed its stance.
The
appointment also comes at a time when Saudi citizens are embracing
cryptocurrencies, like their neighbors in the region. A study in April found
that 54% of Saudi citizens not only saw cryptocurrency as an investment asset
but also believed it should be used as currency. Another study has found that
14% of Saudi citizens were into crypto trading or that they had traded in the
previous six months.
The UAE Factor
Bloomberg
reported, citing unnamed sources, that authorities in Riyadh may have been
forced to contemplate formally regulating cryptocurrencies by the neighboring
United Arab Emirates (UAE).
The
UAE has emerged as the leading destination for crypto and blockchain startups
that want to operate in the region. Several global cryptocurrency exchange
platforms such as Binance and FTX have been granted licenses to
operate in the country. All these factors may have prompted Saudi authorities
to consider formally regulating cryptocurrencies.
In
addition to Al Zahrani’s appointment, sources cited in the Bloomberg report
indicate that Saudi Arabia has a team working with unnamed global crypto firms
for the development of cryptocurrency regulations.
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