A new KuCoin survey shows that Saudi Arabia is a major market for digital currency due to its favorable regulatory environment, large consumer base, and growing interest in cryptocurrency.
Saudi Arabia’s high adoption and penetration of crypto makes it a significant market for digital currencies. This demonstrates the region’s potential for growth in the Middle East and North (MENA).
According to KuCoin’s survey, approximately 3 million Saudi Arabians, or 14% of the population, have become crypto investors. They either own cryptocurrency, or have traded it in the last six months.
17% more respondents were crypto-curious, and they plan to invest in cryptocurrency in the next six month. According to the study, potential crypto investors in the Arab country have a long-term view. 49% of crypto investors planned to increase their investments in cryptocurrency over the next six-months during the first quarter 2022.
As the bearish market started, investors began to favor more conservative crypto investment strategies in the second quarter 2022. Three-quarters of cryptocurrency owners in Saudi Arabia stated that they would rather keep their crypto balance the same as it is than increase it. According to the survey, investors with lower incomes also sold a portion of their holdings during the same time period.
Saudi Arabia has a record number of market entrants . 76% of crypto investors have less than one year experience in the sector. 49% of those who started trading cryptocurrencies within the past six months are also among the lowest-experienced.
According to the report, 63% of crypto-investors are men. Over the years, the gender ratio has remained constant. The number of young crypto investors below 30 years old accounts for at least one third of the population. This figure has risen to 37% Q2 2022.
Half of crypto investors buy digital currencies in fiat currency and then engage in spot trading monthly, which some Arab theologians consider to be halal. According to Cointelegraph, $5 million was invested by the Saudi Arabian Oil Company in blockchain-based oil trader Vakt. This generated excitement among crypto enthusiasts last year. This initiative was intended to digitize and automate post-trade processing. However, it was also reported by Cointelegraph that Saudi Aramco would start Bitcoin ( TTC) mining operations.
Although the Kingdom of Saudi Arabia has yet to issue any regulations regarding cryptocurrencies, it appears that the government is supportive of digital assets and blockchain technology.
The Saudi Arabian Monetary Authority and the United Arab Emirates Central Bank jointly announced an digital currency, Aber. The cryptocurrency can be used to make cross-border payments between these two countries. It is supported by the respective fiat currencies.
