Amid ongoing deliberations surrounding cryptocurrency regulation in Saudi Arabia, Bandar AlTunisi, Head of Development at Binance in the country, expresses optimism regarding the potential implementation of comprehensive regulations for digital currencies in 2024.
Emerging Industry Dynamics
Bader Al Kalooti, Head of Binance Middle East, Africa, Southern Asia (MEASA), and Turkey, underscores the nascent nature of the cryptocurrency industry. He highlights the typical trajectory of disruptive technology rollout, followed by a gradual alignment of regulations with market demands.
Al Kalooti notes that Dubai and Bahrain have been early adopters of regulations, serving as examples for other markets. However, he emphasizes the incremental nature of regulatory evolution. Entities engaged in exploring potential cryptocurrency regulations in Saudi Arabia include the Saudi Central Bank (SAMA), the Ministry of Communications and Information Technology (MCIT) with a focus on blockchain, and the Capital Markets Authority (CMA).
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Financial Sector Development Programme
The Financial Sector Development Programme, initiated in 2018, encompasses the formulation of cryptocurrency regulations, reflecting Saudi Arabia’s broader regulatory objectives.
AlTunisi foresees the establishment of regulations through a phase of understanding their practical implementation. He notes Saudi Arabia’s significance as a pivotal market for the cryptocurrency industry and for Binance.
AlTunisi has observed substantial growth in cryptocurrency transactions over the past seven years, with Chainalysis, a US blockchain analysis firm, recording a 12% year-on-year increase, amounting to $31 billion in July 2023.
Despite acknowledging the uncertainty surrounding the timing of regulatory developments, AlTunisi maintains a hopeful outlook for progress this year, contingent upon various factors.
Strategic Positioning in Saudi Arabia
AlTunisi highlights Binance’s distinctive position as a major exchange with a robust local presence in Saudi Arabia. He anticipates significant market dynamics following regulatory clarity, which could drive industry expansion.
As Saudi Arabia navigates the intricate landscape of cryptocurrency regulation, stakeholders such as Binance stand ready to capitalize on opportunities in one of the world’s most promising markets.
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