How Saudis Access Cryptocurrency Exchanges Despite Restrictions

Over 4 million Saudis own cryptocurrency-even though the government hasn’t given it legal status. In 2024, crypto transactions in the country hit $31 billion, up 153% from the year before. How is this possible when banks are banned from touching crypto? The answer isn’t one single trick. It’s a mix of clever workarounds, global platforms, and a young population willing to figure things out on their own.

There’s No Official Crypto Exchange in Saudi Arabia

You won’t find a Saudi-based app like Binance or Coinbase that’s officially licensed by the central bank. The Saudi Central Bank (SAMA) says banks can’t handle crypto unless they get special permission-and no one has gotten it for retail users. That means no direct bank transfers to crypto platforms. No local exchange. No government-backed wallet. But that hasn’t stopped people from buying Bitcoin, Ethereum, and other coins.

Instead, Saudis use international platforms. Binance, Bybit, and OKX dominate traffic, accounting for 78% of all crypto-related web visits from Saudi Arabia in Q2 2024. These sites aren’t blocked, and most users sign up with their Saudi national ID. Verification works-68% of applicants get approved. But it’s not foolproof. One user reported a $40,000 account freeze after SAMA inquired about their activity. It took 87 days to get it back.

How Saudis Fund Their Crypto Accounts

Since banks won’t process crypto payments, Saudis have built their own financial pipeline. Three main methods dominate:

1. Peer-to-Peer (P2P) trading-37% of all crypto purchases happen here. Platforms like Paxful and LocalBitcoins connect buyers with sellers who accept local bank transfers. Alinma and Al Rajhi banks are commonly used. Users pay 1.8% to 3.5% in fees. One popular Reddit method: convert SAR to USDT via a local P2P seller, then send it to Binance.
2. Cryptocurrency ATMs-There are 127 of them across Riyadh, Jeddah, and Dammam. You can deposit cash and get Bitcoin or USDT sent to your wallet. Fees average 5-8%, higher than online methods, but they’re simple and don’t require ID verification.
3. Third-party payment processors-Services like NOWPayments handle 58% of transactions. Users buy gift cards (22%) or use cross-border services like Wise and Revolut (15%) to move money out of Saudi Arabia and into exchanges.

Most users report average transaction fees of 3.7%. That’s higher than in the U.S. or Europe, but it’s still cheaper than losing access entirely.

VPNs and Mobile Apps Are Essential Tools

Some Saudis use Virtual Private Networks (VPNs) to hide their location or bypass potential internet blocks. NordVPN reported a 28% year-over-year spike in Saudi subscriptions for crypto access in Q3 2024. While not always necessary, it’s a common safety net.

Mobile apps are the main gateway. Sixty-three percent of Saudis under 30 use their phones to trade-thanks to high smartphone penetration and a population where 63% are under 30. Apps like Binance and Bybit are lightweight, support Arabic, and let users deposit via P2P or gift cards without needing a bank link.

The Legal Gray Zone

Here’s the contradiction: Saudi Arabia doesn’t have a law that says crypto is illegal. But it doesn’t say it’s legal either. In 2018, a government committee called it “illegal and unlicensed.” In 2019, the Ministry of Finance warned against dealing in virtual currencies. That warning is still on the books-and under Article 18 of the Anti-Money Laundering Law, authorities could seize assets if they suspect illicit activity.

Yet, there’s no record of anyone being prosecuted for simply owning crypto. And in 2023, a religious body-the Permanent Committee for Scholarly Research and Ifta-ruled that Bitcoin transactions comply with Sharia law. That religious green light matters. Seventy-eight percent of Saudi crypto users say it influenced their decision to participate.

Meanwhile, SAMA is quietly building its own digital currency with China, Thailand, and the UAE through the mBridge project. That’s not a contradiction-it’s a strategy. The government wants control over digital money, but not for public use. Retail crypto? That’s left to the market.

Who’s Using Crypto-and Why

The typical Saudi crypto user is male, between 18 and 35, and tech-savvy. Eighty-nine percent of users aged 18-24 have successfully accessed exchanges. Only 47% of those over 40 have. The gap isn’t just about tech skills-it’s about risk tolerance and access to networks.

Why do they do it? For many, it’s investment. Crypto is seen as a way to grow savings outside the traditional banking system, especially with low interest rates and limited stock market options. Others see it as a hedge against inflation or a path to global financial access. A 2025 YouGov survey found that 62% of users feel positive about their access methods, even with the risks.

But there’s a dark side. In 2024, Saudi authorities recorded 1,842 cases of crypto fraud totaling $320 million. Account freezes, fake exchanges, and phishing scams are common. One user lost $15,000 after trusting a “verified” P2P seller on Telegram. Community forums like r/CryptoSaudi and the 12,500-member Telegram group “Saudi Crypto Traders” have become vital for warning others and sharing tips.

What’s Next? Regulations Are Coming

Don’t expect the status quo to last. SAMA’s fintech sandbox accepted three crypto-related applications in early 2025, including a blockchain KYC provider. The Capital Market Authority released a draft paper in April 2025 proposing rules for digital asset classification. Experts say full regulations are expected by Q4 2025.

If history is any guide, Saudi Arabia won’t ban crypto-it will regulate it. The UAE and Bahrain already have clear frameworks. Qatar is closing in. Saudi Arabia is the last holdout in the GCC, but its crypto market is growing faster than any other. Projected to hit $45.9 billion by 2033, it’s too big to ignore.

When regulation comes, it will likely allow institutional trading first-think hedge funds and corporations-and then slowly open the door for retail users. But until then, the system runs on ingenuity: P2P trades, gift cards, ATMs, and a community that shares tips like secret passwords.

How to Get Started (If You’re in Saudi Arabia)

If you’re new to crypto and want to try it safely:

1. Start with P2P. Use Paxful or LocalBitcoins. Trade with sellers who have high ratings and verified IDs.
2. Use your Saudi national ID to register on Binance or Bybit. Most users get approved.
3. Enable two-factor authentication. It’s required by every major exchange-and it’s your best defense against hacks.
4. Don’t use your bank account directly. Use gift cards or Wise to move money.
5. Join r/CryptoSaudi or the Saudi Crypto Traders Telegram group. Ask questions before you send money.
6. Never invest more than you can afford to lose. There’s no deposit insurance. No legal recourse if something goes wrong.

It takes most people 2-3 weeks to set up a reliable system. Don’t rush. The community has spent years building this system. You can learn from them.