Saudi Financial Market Warns of Investing in Digital Currencies

Saudi Financial Market Warns of Investing in Digital Currencies
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Saudi Financial Market Warns of Investing in Digital Currencies

Saudi Financial Market Warns of Investing in Digital Currencies

While a number of digital currencies have witnessed sharp fluctuations over the past few weeks resulting in financial losses for many investors, it is certain that digital currencies have no legislative or legal cover to help investors increase their credibility in the future.

Given the risk of investing or speculating in digital currencies, the Saudi Capital Market Authority (CMA) has warned against investment and speculation in digital currencies, including Bitcoin, saying it involves high risk.

The risks involve capital losses, fraud, market risks resulting from high price volatility as well as lack of clarity in terms of how these currencies are evaluated, the CMA said in a statement released Sunday.

It is very difficult to protect investors from such currencies as they are unsupervised within the Kingdom, the CMA highlighted.

This warning comes in view of the proliferation of invitations and promotional offers to invest in digital currencies, especially on websites and social media platforms.

“Many websites claim to be licensed entities to invest and speculate in digital currencies, they sign fake contracts and request money transfers to unknown entities.”

The price of "Bitcoin" almost exceeded the threshold of $ 20,000 in late December 2017, and now the currency is trading at $ 8,800.

Notably, the CMA has introduced, within its organizational structure, a specialized department for the protection of the investor, which takes over the task of receiving complaints, addressing them and receiving reports of violations of the Capital Market Law and its executive regulations.



Oil Up as Israel, Hezbollah Trade Accusations of Ceasefire Violation

FILE - An aurora borealis, also known as the northern lights, makes an appearance over pumpjacks as they draw out oil and gas from well heads near Cremona, Alberta, Thursday, Oct. 10, 2024. (Jeff McIntosh/The Canadian Press via AP, File)
FILE - An aurora borealis, also known as the northern lights, makes an appearance over pumpjacks as they draw out oil and gas from well heads near Cremona, Alberta, Thursday, Oct. 10, 2024. (Jeff McIntosh/The Canadian Press via AP, File)
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Oil Up as Israel, Hezbollah Trade Accusations of Ceasefire Violation

FILE - An aurora borealis, also known as the northern lights, makes an appearance over pumpjacks as they draw out oil and gas from well heads near Cremona, Alberta, Thursday, Oct. 10, 2024. (Jeff McIntosh/The Canadian Press via AP, File)
FILE - An aurora borealis, also known as the northern lights, makes an appearance over pumpjacks as they draw out oil and gas from well heads near Cremona, Alberta, Thursday, Oct. 10, 2024. (Jeff McIntosh/The Canadian Press via AP, File)

Oil prices ticked up on Thursday after Israel and Lebanon’s Hezbollah traded accusations that their ceasefire had been violated, and as Israeli tanks fired on south Lebanon.

OPEC+ also delayed by a few days a meeting likely to extend production cuts.

Brent crude futures edged up by 30 cents, or 0.4%, to $73.13 a barrel by 1741 GMT. US West Texas Intermediate crude futures were up 23 cents, 0.3%, at $68.93. Trading was thin because of the US Thanksgiving holiday, Reuters reported.
Israel's military said the ceasefire was violated after what it called suspects, some in vehicles, arrived at several areas in the southern zone.
The deal, which took effect on Wednesday, was intended to allow people in both countries to start returning to homes in border areas shattered by 14 months of fighting.
The Middle East is one of the world's major oil-producing regions, and while the ongoing conflict has not so far not impacted supply it has been reflected in a risk premium for traders.
Elsewhere, OPEC+, comprising the Organization of the Petroleum Exporting Countries and allies including Russia, delayed its next policy meeting to Dec. 5 from Dec. 1 to avoid a conflict with another event.
Also supporting prices, OPEC+ sources have said there will again be discussion over another delay to an oil output increase scheduled for January.
"It's highly unlikely they are going to announce an increase production at this meeting," said Rory Johnston, analyst at Commodity Context.
The group pumps about half the world's oil but has maintained production cuts to support prices. It hopes to unwind those cuts, but weak global demand has forced it to delay the start of gradual increases.
A further delay has mostly been factored in to oil prices already, said Suvro Sarkar at DBS Bank. "The only question is whether it's a one-month pushback, or three, or even longer."
Depressing prices slightly, US gasoline stocks rose 3.3 million barrels in the week ending Nov. 22, the US Energy Information Administration said on Wednesday, countering expectations of a small draw in fuel stocks ahead of holiday travel.
Slowing fuel demand growth in top consumers China and the US has weighed on oil prices this year.