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Open a Crypto Company in Saudi Arabia

Open a Crypto Company in Saudi Arabia

If you want to open a crypto company in Saudi Arabia, you must first register a business and then apply for a special business permit. This is known as the crypto license in Saudi Arabia.

Below, our company formation agents in Saudi Arabia explain the procedure of setting up a company and obtaining a crypto license.

How to register a crypto company in Saudi Arabia

The procedure for opening a cryptocurrency company in Saudi Arabia is the same as for any other business. This means that you need to register one of the approved legal entities by the Company Law and obtain a SAGIA license if you are a foreign investor.

Also, if you want to run your company from this country, you should also look into your options for immigration to Saudi Arabia. Once you find a suitable variant, you can rely on our local specialists to apply for a Saudi residence permit or Iqama.

Following the incorporation of the company, you need to apply for a crypto license, which can also be referred to as a Virtual Asset Service Provider (VASP) license in Saudi Arabia.

Crypto activities that can be completed in Saudi Arabia

Saudi Arabia does not acknowledge the use of cryptocurrencies for usual transactions. However, in 2023, the Saudi Central Bank issued the Payment Service Provider Regulations following the enabling of the Law of Payments and Payment Providers in 2022.

According to these regulations, the following activities can be completed under the Saudi Virtual Asset Service Provider license:

  • digital banking;
  • electronic payment processing;
  • P2P (peer-to-peer) lending and investment operations;
  • asset and wealth investment;
  • crypto and blockchain applications;
  • Buy Now Pay Later (BNPL) applications.

If you want to open a crypto company in Saudi Arabia, these are the main services you can provide under the new laws.

Requirements to obtain a crypto license in Saudi Arabia

If you want to apply for a VASP license in Saudi Arabia, you need to consider the following conditions imposed by the Central Bank:

  • the entity you register must be a joint stock company (our company registration agents in Saudi Arabia can handle the process);
  • the company is required to have the same management for a minimum period of 3 years before applying for the crypto license in Saudi Arabia;
  • the company’s audited financial statements for the past 3 years, drafted under the Saudi Organization for Chartered and Professional Accountants are also a mandatory condition;
  • the senior directors must have extensive experience or knowledge in the field in which the company will operate;
  • the company is required to have sufficient capital to cover at least 12 months following the issuance of its prospectus.

The minimum capital for such companies is SAR 10 million (approx. 2.6 million USD).

With respect to foreign companies, they may operate in Saudi Arabia, as long as their activities are in line with the ones accepted by the Central Bank. They can apply for a crypto license in Saudi Arabia before registering a legal entity. However, the selected form must be incorporated when the license is issued. From this point of view, it is important to note that the issuance of this permit can take up to one year.

A map of crypto-related activities in Saudi Arabia

The fintech sector is doing quite well in Saudi Arabia, following an ascending trend after the pandemic. For example:

  • the number of fintech startup companies reached 207 in 2023, compared to 10 registered in 2018;
  • this means their number increased 20.7 times in 5 years;
  • the same companies managed to raise USD 1 billion by the end of 2023.

Our local agents are at your disposal if you want to open a crypto company and work closely with accountants in Saudi Arabia to offer some of the important services a business may need. So, feel free to contact us and get all the information on how to obtain a crypto license in Saudi Arabia.