Kuwait and Cryptocurrency
Kuwait Cryptocurrency Laws
Regulation of Digital Currencies: Cryptocurrency, Bitcoins, Blockchain Technology
Kuwait’s Ministry of Finance does not recognize cryptocurrencies for purposes of official commercial transactions. Similarly, the Central Bank of Kuwait (CBK) prohibits the banking sector and companies under its control from trading in cryptocurrencies. The prohibition includes acceptance of cryptocurrency usage in e-payment transactions, and mediation between the parties to cryptocurrency transactions. The CBK has asked the Ministry of Commerce and Industry to warn consumers about the risks of cryptocurrencies such as bitcoin.
In January 2018, the CBK confirmed news that it was creating an infrastructure for the financial and banking sector in the country including the issuance of an e-currency, which it distinguished from virtual currencies. The establishment of a local digital currency will fall under the umbrella of e-payments, the statement said. The Central Bank highlighted that the local digital currency will have the same characteristics as paper money, such as an issuance number. It will also be monitored by the Kuwaiti government. Furthermore, it could be exchanged with other currencies as well as used to pay for goods and services.
 Ministry of Finance Says Does Not Recognize Virtual Currency Bitcoin, Arab Times (Dec. 18, 2017), https://www.arabtimesonline.com/news/ministry-finance-says-not-recognise-virtual-currency-bitcoin/, archived at https://perma.cc/DBZ9-E66N.
 Darius McQuaid, Kuwait Refuses to Trade Cryptocurrency Amid Price Surge, Express (Dec. 20, 2017), https://www.express.co.uk/finance/city/894639/bitcoin-banned-Kuwait-KPMG, archived at https://perma.cc/KX9A-VM73.
 Press Release, Central Bank of Kuwait (Jan. 18, 2018), http://www.cbk.gov.kw/ar/cbk-news/announcements-and-press-releases/press-releases.jsp?kcp=o8QTtSFuP5Ix5WoYWwA74iHHhdsnIQ (in Arabic), archived at https://perma.cc/RXB3-F447.