The Kuwaiti Finance Ministry has apparently refused to recognize or recognize Bitcoin and banned financial institutions from trading in a critical currency.
According to sources, the Arab Times report revealed that the Ministry and the Kuwaiti Central Bank have banned Bitcoin trade between the banking sector and its regulators – the explosive growth of Bitcoin in this year’s popularity and demand.
Public sources also confirm that both the ministry and the central bank have no competence to combat trade – probably between daily providers and retailers – because they do not recognize the crypto value. There is no regulation as Bitcoin is traded over the internet and “there is no regulator”.
As a result, the central bank has led the Kuwaiti Ministry of Trade and Industry to inform policymakers and investors about the risks associated with Bitcoin investments.
The Kuwaiti laws do not prohibit e-commerce online commerce because they belong to e-government-related e-government laws. The Arab Times report was released earlier this week. The report also pointed out that Emirate citizens are “the front line for buying and selling bitcoins” after the meteoric gains this year. “The revenue from Bitcoin, which is unknown to Kuwait, is considered illegal and polluted because Kuwaiti law ignores these currencies,” warned Kuwait prosecutors.
Because of this, people who handle Bitcoins must question money and its source on the Money Laundering Act because it’s money from unknown sources.
In neighboring Bahrain, the constitutional monarchy of more than 30 island states that share the Persian Gulf and Kuwait, the government takes a friendlier, more open stance on cryptocurrencies. “We are open to Bitcoin,” said Khalid Al Rumaihi, head of economic development in Bahrain earlier this year.
In addition, the UAE launched one of its first Bitcoin exchanges in 2014 by iGot. In 2016, a Jordanian entrepreneur launched BitOasis, a Bitcoin exchange and Dubai Stock Exchange. Under the new rules adopted by the ERDF central bank in January of this year, they feared “Bitcoin bans” after the central bank clarified that the new laws did not apply any new “virtual currency” laws.