As Bitcoin is dumping down day by day and lead by major crackdown many countries have banned cryptocurrency as many people are seeking major losses and this is creating an anonymous problem in the country, so the country issued the warning for the people that they are banning cryptocurrency.
Saudi Arabia had banned cryptocurrencies like bitcoin in the kingdom as the government launched the major crackdown, warning against the “illusion and get-rich” schemes by high-risk traders and people are getting involved in it.
The warning issued yesterday a government committee of central bank comprised of government ministries and the Saudi Arabian Monetary Authority.
In a statement, the committee said the reason was “the bitcoin poses negative consequences and high risks on traders” as the government control outside all the high risk.
The Saudi-Arabia’s citizens and residents have been recommended not to drift “after such illusion and get-rich” schemes due to high risk, security and the market risks is too much and the loss also as the huge loss is unbearable by them who invested or involved, which includes signing of fictitious contracts and transfer of funds to unknown recipients. There are many illegal activities going on regarding cryptocurrencies.
The Capital Market Authority, Ministry of Ministry of Interior membership, Ministry of Media, Ministry of Commerce and Investment and Saudi Arabian Monetary Authority these all supreme decree was formed by the Watchdog.
The watchdog will work with relevant parties which will reduce marketing for investment and trading in virtual and forex currencies. “I just don’t believe in this bitcoin thing,” Al-Waleed said before comparing it to Enron,
“This thing is not regulated. It’s not under control. It’s not under the supervision of any federal – elect – United States Federal Reserve or any other central bank.”
The announcement follows the launch of BitOasis, which is the first bitcoin company in the Middle Eastern and North Africa region.
The main problem of ban is blind faith of people trusting on bitcoin for getting rich in little, continuous illegal activities carrying on, as the Citizens in Saudi Arabia, the UAE, Kuwait, Bahrain, and Qatar can use the exchange service by sending money to a BitOasis bank account and exchanging it for bitcoins for a one per cent fee.
Ola Boudin, a female Jordanian entrepreneur, is the brainchild behind BitOasis.
As the news let reported that when Ms. Boudin, who formerly worked in London’s financial hub, returned to Jordan she couldn’t find anyone to buy from and paid a Canadian source via Paypal,
In partnership with Daniel Robenek, a Czech software engineer, she built the platform to enable people living in the Middle East to safely use bitcoin.
So what do you think Saudi Arabia did right by banning the cryptocurrencies in their country?