According to a recent survey by KuCoin exchange, the usage and adoption of cryptocurrency in Saudi Arabia are significantly high. The study, which analyzed the cryptocurrency behavior of Saudi Arabia’s residents, indicated that approximately 67% of the respondents have invested in or traded cryptocurrencies.
Furthermore, the survey found that Bitcoin is the most popular digital currency in Saudi Arabia, with a 64% adoption rate among the respondents who have invested in or traded cryptocurrencies. Additionally, the study disclosed that 18% of the participants hold various other digital currencies such as Ethereum, Ripple, and Litecoin.
The report also revealed that the primary motivation for investing in cryptocurrency among the respondents is for financial gain, followed by an interest in the technology behind it. Moreover, the study indicated that the majority of the respondents prefer to use online cryptocurrency trading platforms to conduct their transactions.
It was also found that a significant number of Saudi Arabians are utilizing cryptocurrency for online gambling, particularly in Saudi Arabian friendly online bookmakers, according to the study.
According to the survey, male crypto investors are using their gains to expand their portfolios and reinvest, with 29% planning to start their own businesses and 28% intending to invest further in the financial market.
The survey also found that spot trading using fiat currency once a month is the only type of crypto trading deemed halal by some Arab theologians, with 50% of investors using this method. With strong crypto adoption in Saudi Arabia, the Middle East and North Africa (MENA) region presents significant potential for growth.
Despite the lack of official legislation in Saudi Arabia, the government has shown a positive attitude toward digital assets and blockchain technology. In 2019, the Central Bank of the United Arab Emirates (UAECB) and the Saudi Arabian Monetary Authority (SAMA) launched Aber, a digital currency backed by the fiat currencies of both nations for cross-border transactions.