Riyadh – Mubasher: Saudi Arabia’s Capital Market Authority (CMA) has warned against investment and speculation in the initial public offerings (IPOs) of digital currencies, citing very 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 the latter are unsupervised within the kingdom, the CMA highlighted.

The Saudi CMA’s announcement comes on the back of the launch of several offers promoting investments in digital currencies as well as the high traction these currencies have via social media.