Saudi Arabia -- Custody Regulations Regulatory Overview

Saudi Arabia maintains a restrictive stance on cryptocurrencies and digital assets, with no specific custody regulations, custodial licenses, or related requirements as of late 2024, due to cryptocurrencies being declared illegal and unlicensed in 2018 by a government standing committee involving SAMA and CMA. This position is reinforced by warnings from the Saudi Arabian Monetary Authority (SAMA), Capital Markets Authority (CMA), and Ministry of Finance (MOF), which state that virtual currencies lack legal recognition, oversight by any legitimate authority, and fall outside the regulatory framework[1][2][3][5].

Key Specific Elements Requested

• Custodial License Requirements: None exist, as no licenses are issued for cryptocurrency practices; entities claiming otherwise face legal action[1][3].
• Segregation of Client Assets Rules: No rules apply, given the absence of recognized crypto custody services[1][5].
• Insurance/Bonding Requirements: Not mandated, as crypto activities are unlicensed and prohibited[1].
• Cold Storage Mandates: No mandates, due to the overall ban on public cryptocurrencies[1][2].
• Qualified Custodian Definitions: No definitions provided in regulations, as crypto custody is not authorized[5].

One source claims the Capital Market Authority (CMA) issued "Rules for Regulating Virtual Assets" in 2023, potentially implying custody platforms, but this conflicts with multiple authoritative reports confirming no specific crypto legislation as of December 2024 and cryptocurrencies remaining illegal[6][1][5]. No verified regulatory references confirm such rules.

No pending custody legislation is identified in available sources; Saudi Arabia focuses on CBDC pilots via SAMA rather than public crypto frameworks, with Vision 2030 hinting at future digital economy evolution but no timelines for crypto custody[1][3][5]. Individual holding or mining may occupy a gray area without explicit bans, but trading and services are restricted[3][5]. For primary sources, refer to SAMA, CMA, and MOF warnings (no direct URLs provided in results beyond general sites like those cited).