Saudi Arabia’s banking regulator recently appointed Mohsen AlZahrani to lead its virtual assets and central bank digital currency program in a sign of the Gulf state’s potential crypto ambitions, Bloomberg reported.
While the Kingdom has taken cautious steps to approach virtual assets, the emergence of a global crypto hub in the UAE has created “some urgency in Riyadh to draft more formal rules for the asset class,” people familiar with the matter told Bloomberg.
AlZahrani, a former managing director at consultancy Accenture, reports to Ziad Al Yousef, the Central Bank’s deputy governor for development and technology, as per reports.
“They’re part of a team in Riyadh that’s engaging with some of the world’s biggest crypto firms on future regulations.”
Representatives for SAMA didn’t respond to requests for comment, Bloomberg reported, adding the Kingdom has been pushing firms to increase their presence in the capital city as part of Crown Prince Mohammed bin Salman’s plans to turn Riyadh into a global hub.
“That’s posed a direct challenge to the Gulf’s business hub, Dubai,” Bloomberg said, adding the Saudi government has been collaborating for several years with the UAE on a potential joint digital currency.
In 2018, Riyadh banned banks from processing transactions involving cryptocurrencies, though workarounds exist to trade.
However, in recent months, local financial firms reiterated the restrictions in correspondence with customers.
“Binance Holdings Ltd., have staffed up their Saudi teams, identifying the kingdom as a large untapped market if the current restrictions get loosened,” Bloomberg said.
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