Apply for a crypto license in Saudi Arabia

The polity’s regulatory landscape has evolved in line with global standards, requiring any crypto-related enterprise to operate transparently and within a strictly governed legal framework. Obtaining a licence involves more than simply submitting paperwork or meeting capital needs. It also demands full adherence to anti-fraud regulations and due diligence protocols. However, in return, entrepreneurs are granted the ability to conduct operations officially, protect client interests through legal safeguards, and enter into domestic and international investment partnerships with confidence.

Holding a crypto licence in Saudi Arabia significantly enhances a company’s operational capacity. It grants access to essential banking services, fintech platforms, and both government-led and private investment initiatives. More importantly, it legitimises the business in the eyes of regulators, financiers, and clients, reinforcing trust through compliance and transparency.

Legal regulation of cryptocurrencies in Saudi Arabia

In alignment with the Kingdom’s transformative Vision 2030 agenda, the polity is making significant strides in advancing its digital finance sector, with particular attention to the evolving world of cryptocurrencies. Against this dynamic backdrop, securing a cryptocurrency licence in Saudi Arabia entails more than merely fulfilling procedural steps; it demands a thorough grasp of the Kingdom’s evolving regulatory landscape and its commitment to international pecuniary standards.

The regulation of electronic assets in the polity is multifaceted, shaped by a series of laws, circulars, and directives issued by key government bodies. At the heart of this framework lie the AML and CFT Laws, which are instrumental in shaping compliance obligations for all actors in the crypto space.

One of the most important mechanisms for fostering innovation while maintaining regulatory oversight is the Regulatory Sandbox Framework, introduced by the Saudi Central Bank (SAMA). This initiative enables fintech and crypto firms to operate within a controlled, semi-regulated environment, allowing them to test new business models under limited supervision before full authorisation. Alongside this, the Capital Market Law, overseen by the Capital Market Authority (CMA), governs activities involving electronic securities, tokenized assets, and investment platforms. It covers areas of cryptocurrency activity that qualify as pecuniary instruments.

Furthermore, the E-Commerce Law of 2019 plays a key role in regulating electronic deals. It addresses issues such as electronic payments and the use of electronic currencies in online commerce, setting a foundational framework for crypto-related business operations in the electronic economy.

The polity is also in the sequence of drafting amendments and supplementary legislation to clarify and strengthen the legal basis for crypto licensing. These reforms aim to define more precisely the regulatory conditions under which virtual assets can be authorised and operated legally within the Kingdom.

Oversight responsibilities are divided between two principal regulators. SAMA is in charge of supervising banks, fintech entities, and electronic payment systems. It manages the sandbox initiative and grants temporary authorisations to crypto operators. Meanwhile, the CMA focuses on the capital markets, overseeing investment platforms, Initial Coin Offerings (ICOs), Security Token Offerings (STOs) and other crypto-based instruments that resemble traditional securities.

The polity is also aligning its electronic asset regulations with leading international frameworks. As an active member of the Financial Action Task Force (FATF), the Kingdom adheres to its guidelines on AML, CTF, and due diligence in crypto deals. This includes stringent needs on tracking electronic transfers, verifying customer identities, and registering service providers such as exchanges and wallet platforms. Additionally, the Kingdom studies and adapts best practices from other jurisdictions, including the European Union’s MiCA framework, the UK’s FCA Cryptoasset Guidance, and the UAE’s regulatory models from ADGM and DIFC.

Organizational and legal form

As global interest in cryptocurrencies continues to grow and the fintech sector evolves at an unprecedented pace, the polity is emerging as an increasingly appealing destination for technology-driven startups and forward-thinking financiers. The Kingdom’s proactive approach to electronic innovation and pecuniary reform, coupled with its commitment to regulatory clarity, positions it as a promising jurisdiction for establishing a licensed cryptocurrency business. However, selecting the most appropriate legal form is a crucial first step—one that must align with Saudi laws and the specific nature of the crypto venture.

Among the most flexible and accessible structures is the Limited Liability Company (LLC). This legal form offers notable advantages, including full foreign ownership, simplified formation procedures, and manageable governance needs. It is particularly well-suited for small to medium-sized crypto enterprises, especially those aiming to participate in the Saudi Central Bank’s (SAMA) regulatory sandbox. LLCs also benefit from limited liability for shareholders, streamlined corporate bank account opening, and ease of expansion—making them ideal for startups or growing businesses with international outlooks operating within the permitted fintech framework.

Alternatively, businesses that already operate an established crypto entity abroad may consider setting up a branch of a foreign company. This option enables swift market entry without the need to establish a new legal entity, offering a streamlined pathway through the Ministry of Investment of Saudi Arabia (MISA). Approval depends on the alignment of the company’s activities with local fintech categories—often requiring additional descriptors like IT consultancy, software development, or electronic finance. An international licence can significantly strengthen the application to SAMA, showcasing existing expertise and operational maturity. This route is especially attractive for enterprises seeking rapid expansion, reputation leverage, and a minimal regulatory learning curve.

Criteria involved

Although the polity has not yet established a fully developed system for issuing a universal crypto permit, regulators are clearly moving toward creating a comprehensive legal framework. Basic conditions have already been defined, and compliance with them gives businesses a chance to participate in the fintech sandbox or to operate legally in the local market. Close attention to these needs will help companies prepare for future regulatory tightening and the eventual standardisation of crypto legislation.

The cornerstone of obtaining official authorisation for blockchain-related activities in Saudi Arabia lies in the applicant’s personal and corporate compliance with a range of criteria. The company must present a clear internal structure that includes:

• Defined powers and responsibilities of all managers
• Full disclosure of the identity of the founders
• Verified business reputation of key individuals
• Proof of relevant professional qualifications

Given the heightened focus on pecuniary security and transparency, authorities place strict demands on openness. In order to secure a crypto licence in Saudi Arabia, it is essential to first establish a legally registered entity, supported by all the required corporate indentures in accordance with Saudi law. A detailed business plan must also be prepared, outlining the nature of the services to be provided, expected sources of revenue, and the profitability structure. Previous experience in entrepreneurship or fintech—demonstrated through past projects—is a key advantage. Readiness for regular inspections by the authorities is also required.

A crucial part of the sequence is submitting a preliminary application to the Saudi Monetary Authority for admission into the regulatory sandbox for crypto projects. Currently, this is the only recognised route for legalising electronic asset deals in the country.

Applicants must also meet pecuniary and audit-related needs in order to receive a crypto licence and enter the polity’s electronic asset market. The authorities place particular importance on pecuniary solvency, long-term sustainability, and the transparency of funding sources. These standards apply to both capital needs and systems for tracking pecuniary flows, especially where investment attraction or asset exchange platforms are involved.

For companies seeking a crypto licence in Saudi Arabia, it is especially important to demonstrate that their capital base is stable and resilient to market fluctuations. The base capital needs currently stands at 10 million SAR (approximately 2.6 million USD), a threshold set by the Saudi Central Bank (SAMA) to ensure the pecuniary stability of market participants.

In today’s electronic economy, the sustainability of a crypto project depends heavily on having a secure and reliable technical infrastructure and a capable team. This is particularly important when applying for a crypto permit in Saudi Arabia. Also to a standard IT infrastructure and proper data protection systems, the business must show that it has a complete operational architecture capable of processing deals safely and efficiently.

Application sequence

The preparatory stage is not just a formality—it is the cornerstone of the entire sequence when seeking authorisation for a fintech or blockchain-related project in Saudi Arabia. How well this phase is handled often determines the speed, ease, and success of the entire licensing journey.

At the outset, it is essential to clearly define the organisational and legal structure of the company. Equally important is the careful selection of the approved business activity. Categories such as “financial technologies” or “digital solutions” are preferable. Direct references to cryptocurrency or bitcoin should be avoided, as they may raise red flags and lead to rejection. Instead, positioning the project under broader themes such as electronic innovation, blockchain infrastructure, or pecuniary security is advised.

Assembling the full set of documentation is a critical part of this initial phase. Properly prepared and professionally presented materials will serve as the foundation of the application, significantly reducing the risk of procedural delays or denials.

Once documentation is in place, the next step involves submitting the application electronically through official government platforms. This begins with enrollment on the MISA (Ministry of Investment of Saudi Arabia) portal. Here, applicants must upload all required indentures and select an appropriate, authorised business activity. Following the approval of the investment licence, the company may then proceed to the SAMA (Saudi Central Bank) Regulatory Sandbox.

The application sequence at this stage becomes more detailed and technical. Companies are required to complete a comprehensive English-language questionnaire. This must include a clear outline of the company’s structure, a description of the product or service, associated risks, data security protocols, and a statement of compliance with AML/CFT needs. Supporting indentures such as system architecture diagrams, pecuniary models, slide decks, and the team’s credentials and experience should also be attached to bolster the submission.

While exact processing times can vary contingent on the complexity and nature of the project, standard timelines offer a useful reference. The review of an investment licence application through MISA typically takes between 2 to 4 weeks. For SAMA, a more detailed analysis may take up to 3 months, with an additional 2 to 4 weeks potentially needed for supplementary submissions, interviews, and responses to regulators’ follow-up queries.

To ensure full compliance and streamline the sequence, it is highly recommended to work closely with legal and regulatory experts who have up-to-date knowledge of both MISA protocols and SAMA Sandbox expectations. Their guidance can make a crucial difference in navigating the complexities of Saudi Arabia’s evolving fintech landscape.

Indentures needed

The polity is rapidly emerging as a leading player in the fields of pecuniary technology and blockchain innovation. As part of its broader vision to modernise and diversify the economy, the Kingdom is opening its doors to businesses operating in the electronic asset space. However, entering this highly regulated market requires compliance with a strict licensing sequence designed to ensure transparency, pecuniary soundness, and technological maturity.

At the initial stage, regulatory authorities focus on verifying the identity and legal status of the applicant. To initiate the enrollment sequence, the following indentures must be submitted:

• Colour-scanned, notarised, and translated passports of all founders, owners, and key employees (translated into Arabic or English).
• Company statutory indentures, including the articles of incorporation, charter, and certificates of state and excise enrollment.
• Ownership and beneficiary documentation, clearly showing the corporate structure, the list of participants, and the breakdown of ownership shares.

Without this core documentation, it is not possible to submit a valid application for a crypto licence in Saudi Arabia.

Another major need relates to the pecuniary transparency of the applying organisation. Authorities require:

• Pecuniary records for the past one to two years, including the balance sheet, profit and loss statement, and cash flow report.
• Audit reports prepared by a licensed local or international auditing firm, confirming the authenticity and accuracy of pecuniary documentation.
• Forecast pecuniary models (if the company is newly established), projecting operations, client base, and anticipated expenses for the next one to three years.

Given the complexity and security risks associated with electronic assets, the applicant must also demonstrate strong technical capabilities. To apply for a blockchain wallet licence in Saudi Arabia, the following technical documentation must be provided:

• A detailed description of the IT infrastructure used to support electronic asset operations.
• Certificates and qualifications of key IT personnel, proving expertise and relevant experience.
• Risk assessments and incident response plans, outlining cybersecurity protocols.
• Descriptions of KYC/AML procedures and monitoring systems, including the service providers used (e.g., Chainalysis, SumSub, etc.).

These needs collectively ensure that only well-prepared, financially stable, and technologically capable companies receive approval to operate within Saudi Arabia’s digital asset framework. For businesses looking to enter this fast-growing market, understanding and meeting these regulatory expectations is crucial.

Analysis of the main risks

Companies seeking to enter the cryptocurrency sector in KSA must tread carefully, as the legal and pecuniary landscape remains complex and evolving. Although the Saudi Monetary Authority and the Capital Market Authority have taken steps to establish a regulatory framework, the existing rules are still fragmented and not yet fully developed. The lack of comprehensive legislation leaves room for interpretation, which can create serious legal risks. Regulators treat breaches of compliance with utmost seriousness, meaning that firms must put in place robust internal control mechanisms and ensure their teams are regularly trained on regulatory matters.

Pecuniary compliance is equally critical. Saudi regulators place high emphasis on the transparency and sustainability of pecuniary operations. Any business applying for a crypto licence is required to present accurate pecuniary records, verify the lawful origin of its funds, and prove that it has adequate capital to support its day-to-day activities. Failing to meet these pecuniary disclosure obligations can lead not only to the rejection of a licence application but also to severe penalties, including fines or asset freezes. Companies that attempt to obscure the source of their funds or maintain incomplete accounting records face particularly high risk.

To mitigate these threats, it is strongly advised to engage professional audit and legal firms. These experts can help set up compliant pecuniary systems, prepare all necessary documentation, and minimise the chances of costly errors or regulatory issues. Regular audits are becoming a vital part of ongoing compliance and risk management in the crypto space.

Moreover, reputational risk must not be underestimated. In today's electronic pecuniary environment, a company's image can significantly influence its ability to operate within the polity and maintain relationships with foreign partners and financiers. Regulators scrutinise the transparency of ownership structures, the reputations of key stakeholders, and the company’s history. Associations with fraudulent schemes, entities under sanctions, or involvement in public scandals will almost certainly result in the rejection of a licence application.

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Technical Standards 

Obtaining a crypto service permit in KSA involves far more than simply proving pecuniary capability. The Central Bank and the Ministry of Investment (MISA) place significant emphasis on the technical infrastructure of the applicant. This is largely due to the inherently high-risk nature of the cryptocurrency market. To safeguard users and ensure long-term stability within the electronic asset ecosystem, the Kingdom enforces strict technical standards, aligned with internationally recognised best practices.

At the heart of the application sequence is Saudi Arabia’s national strategy on digital assets, which requires all crypto-related businesses to operate in accordance with a clearly defined and robust regulatory framework. Companies must be able to demonstrate the implementation of advanced security protocols, including multi-layered data protection systems, modern encryption technologies, multi-factor authentication, and real-time activity monitoring and anomaly detection tools. These tools must not only be in place but also actively used, with full transparency during audits and technical assessments.

Just as critical is the ability to guard against internal threats, such as fraud and unauthorised access. Regulators require clear evidence of internal control systems and a strong corporate governance structure that supports electronic asset integrity. Any failure to meet these high standards is one of the most common reasons applicants are denied crypto licences in the polity.

From a technical standpoint, the architecture of the IT infrastructure is of prime importance. Applicants must prove that their platforms can withstand significant transaction volumes, maintain high system availability, and offer swift recovery in the event of a fault. Infrastructure must be housed within state-of-the-art data centres, equipped with elevated levels of physical and electronic security. In this context, performance, reliability, and operational resilience are considered non-negotiable.

Businesses are also expected to have in place comprehensive backup and disaster recovery procedures, which should be tested regularly. Load testing and fault tolerance assessments form a core part of the regulatory needs, ensuring that systems are not only secure but also capable of handling unexpected stress without interruption.

Responsibility and sanctions

The regulatory framework governing cryptocurrency activities in Saudi Arabia is both rigorous and actively enforced. Administrative penalties form the first line of consequences for entities that fail to comply with licensing obligations. These sanctions may be imposed for a variety of reasons, including failure to meet licensing conditions, breaches of security protocols, delays in required testing, or neglecting to submit mandatory reports. The Saudi regulator carries out ongoing inspections without prior notice, making the verification of a crypto licence an essential and continuous need. These audits assess whether a company is operating within the bounds of its licence, maintains technical readiness, and adheres to regulations designed to safeguard client rights.

Civil liability is another important legal consideration when applying for or operating under a cryptocurrency licence in Saudi Arabia. It involves compensating affected third parties—such as clients, business partners, or service providers—if they suffer harm due to the company’s actions. These liabilities can arise from poor handling of customer funds, breaches of contract, inadequate cybersecurity measures, or system failures. To mitigate the risk of legal claims or disputes, firms are strongly advised to establish and maintain robust internal controls and risk management procedures.

Opening accounts when applying for a crypto license in Saudi Arabia

Choosing the right banking partner and fully understanding the regulatory landscape are essential steps in ensuring both the success and legal integrity of a company operating in Saudi Arabia’s cryptocurrency sector. The pecuniary system in the Kingdom is tightly regulated by government bodies, with a strong emphasis on transparency and the security of electronic asset deals. As such, foreign companies seeking a cryptocurrency licence must conduct a thorough review of local banking practices and compliance standards.

These pecuniary institutions are known for their robust infrastructure, comprehensive service offerings, and proactive adoption of electronic solutions that support the evolving needs of the cryptocurrency industry. Importantly, they all operate under the strict oversight of the Saudi Central Bank (SAMA), ensuring that their operations meet the highest standards of regulatory compliance and pecuniary integrity.

A core need when opening a bank account in the context of applying for a crypto licence is adherence to AML regulations. Saudi authorities enforce rigorous protocols to prevent the misuse of electronic assets for illicit purposes. This includes compulsory client identification, in-depth verification of all ultimate beneficial owners, and ongoing scrutiny of both the origin and destination of funds involved in deals.

License renewal conditions

In the polity, maintaining legal compliance is essential for any company operating in the crypto space. The sequence of renewing or extending a crypto license is governed by strict regulatory standards, and non-compliance can result in severe repercussions, including the loss of operational rights. Therefore, a deep understanding of the legal intricacies involved in license renewal is not just beneficial—it’s vital for a company’s continued success and growth in the Kingdom.

To safeguard their legal standing and unlock further opportunities, companies must prepare well in advance. One of the most critical needs is submitting a renewal application before the current license expires, typically within a 30 to 60-day window. Missing this deadline can lead to the revocation of the company’s authorization to carry out crypto-related activities.

To navigate this complex sequence and mitigate risks, engaging professional advisory services is strongly recommended. These experts can guide firms through the necessary documentation and procedural steps.

As part of the renewal sequence, companies are required to submit comprehensive and up-to-date documentation, including:

• Pecuniary records;
• Proof of compliance with cybersecurity protocols;
• Results of audits and system tests;
• Updates on changes in ownership or executive leadership;
• Certification confirming no legal violations during the license period.

This documentation reassures regulators that the company remains transparent, compliant, and committed to maintaining the highest operational standards.

Levies

The polity maintains a well-organized regulatory framework that governs the obligations of legal entities across various economic sectors. For foreign companies operating within the Kingdom, the primary excise concern is the CIT, which stands at a flat rate of 20%. This excise is compulsory for all non-Saudi legal entities engaging in commercial activities in the country.

In contrast, domestic companies and businesses from Gulf Cooperation Council (GCC) member states are subject to a different system called Zakat—a religious levy calculated at approximately 2.5% of a company’s capital or income. Notably, Zakat does not apply to foreign entities registered outside the Kingdom. This distinction is particularly relevant for those pursuing a cryptocurrency license in Saudi Arabia.

Additionally, VAT is set at 15% and applies broadly to the sale of goods and services, including electronic pecuniary services and those involving cryptocurrencies and other electronic assets. Another key consideration for foreign financiers is the 5% withholding excise imposed on dividends and royalty payments to non-residents, a factor that should be carefully evaluated in cross-border pecuniary planning.

For businesses seeking to obtain a virtual currency license in Saudi Arabia, compliance with both domestic legislation and international agreements is essential. Together, these fiscal and regulatory policies form a robust yet adaptable environment that supports technological advancement and economic innovation.

Analysis of errors in the design of a license in Saudi Arabia for crypto-activity

One of the most common sources of failure in obtaining a crypto license in Saudi Arabia stems from legal missteps. These include selecting an inappropriate legal structure or inaccurately stating business activities in enrollment indentures. More critically, if the declared activities do not align with local laws and regulatory standards, companies risk license rejection or drawn-out administrative delays.

Given the polity's stringent regulatory environment for the crypto sector, any failure to comply with legal needs can result in severe consequences—ranging from license denial to transaction freezes, hefty fines, and even criminal charges against company executives.

To navigate these risks, it's essential to consult legal professionals experienced in cryptocurrency and fintech. These experts can ensure indentures are correctly prepared and that your legal strategy is sound and compliant.

Also to legal concerns, many firms encounter issues due to organizational oversights, which often lead to missed deadlines or outright license rejection. Common organizational errors include:

• Poorly structured internal processes
• Outdated or incomplete AML and CFT policies
• Weak or insufficient internal control and compliance frameworks
• Governance models that fall short of Saudi regulatory expectations

Regulators also closely scrutinize the qualifications of company leadership and the transparency of ownership structures. Technical infrastructure that fails to meet security or standardization needs can further complicate the licensing sequence.

To improve your chances of success, companies should conduct regular internal audits and system testing well before submitting their application. This ensures that all technical and procedural elements are in line with regulatory standards.

Ultimately, reducing the risk of rejection or delay requires a proactive and thorough approach. Companies should review every stage of the application sequence, identify potential errors early, and commit to maintaining full transparency and compliance from the outset.

Procedures for appealing decisions of regulators

To challenge a regulatory decision denying a cryptocurrency license in Saudi Arabia, an appeal must be submitted in writing. This appeal should clearly outline the grounds for disagreement with the regulator’s decision and include supporting documentation demonstrating compliance with the relevant legal needs.

Typically, appeals must be lodged within 15 to 30 calendar days from the date the official notice of refusal is received. Failure to meet this deadline will result in the automatic dismissal of the appeal.

Once an appeal is filed, the regulatory authority initiates a thorough review sequence. During this phase, the submitted indentures are examined in detail, and the regulator may request additional information or schedule consultations for clarification. At this stage, the applicant is expected to take an active role by promptly responding to inquiries and engaging in any necessary discussions. These efforts are essential in demonstrating adherence to the legal criteria for obtaining a crypto license in the Kingdom.

The appeal is assessed with input from relevant professionals, including experts in pecuniary regulation and legal affairs. A final decision is made following a comprehensive evaluation of all evidence and arguments presented. If the appeal is upheld, the applicant is granted the opportunity to proceed with the licensing sequence.

Final word

Obtaining a cryptocurrency license in Saudi Arabia is a highly complex sequence that demands a deep understanding of local laws and regulatory frameworks. It involves assembling a comprehensive set of indentures, undergoing rigorous checks, and meeting strict standards related to security, compliance, and business transparency. For entrepreneurs attempting to navigate this independently, the sequence can be both overwhelming and fraught with risk.

This is where our consultancy steps in. With years of hands-on experience and in-depth knowledge of the polity’s legislative landscape, our team provides tailored support throughout every stage of the licensing journey. We take the time to understand each client’s business model and objectives, ensuring a personalized strategy that aligns with their goals.

Securing a crypto license in Saudi Arabia offers more than just regulatory approval—it significantly enhances a company’s credibility. A valid license not only builds trust with financiers and clients but also opens doors to advanced pecuniary tools and international markets. It serves as a hallmark of operational integrity, confirming adherence to high standards of transparency and security.

By partnering with our experts, you eliminate the stress of navigating bureaucracy and compliance hurdles on your own. We handle documentation, provide legal guidance, and offer strategic advice for regulatory efficiency. Let seasoned professionals manage the complexities, so you can focus on growing your business with confidence and peace of mind.