Although it has been over a year since public announcements were made about the possibility of cryptocurrency (CC) being banned in Kuwait and/or regulated; there is still no updates in connection with either proposed plans. I receive many inquiries from locals and foreigners about the purchase and sale of CC, and I can still firmly say that CC is not explicitly regulated within the State of Kuwait.
Law No. 32 for the Year 1968 with regard to Currency, Central Bank of Kuwait (CBK) and the Organization of the Banking Profession, governs banking and financial transactions within the State of Kuwait. While the CBK implements the laws and regulations related to the controls on currency exchange companies, there is no mention of CC within the Ministerial Order concerning Subjugation of the Currency Exchange Companies to the Control of the Central Bank of Kuwait. Further, CBK has not provided any indication that CC falls within the scope of Banking and Securities Laws. Due to there being no current laws that specifically reference or regulate CC, there is no prohibition on CC.
Moreover, there are several companies operating in Kuwait that buy and sell cryptocurrency, and CBK and other banking institutions within the State of Kuwait have used Ripple technology as a payment system (not the currency). This shows that CC is not prohibited in Kuwait, and possibly Kuwait’s willingness to continue researching ways to regulate and monetize on this type of currency
By Najma Brown, Esq.