Kuwait confirms ban on the use of cryptocurrency as a means of payment

The Central Bank urged banks to refrain from providing any services related to virtual assets

19.07.2023 - 13:25

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What’s new? Several Kuwaiti authorities have come out against the use of cryptocurrencies in the country. The Ministry of Commerce and Industry issued a circular that bans the use of virtual assets as a tool or means of payment, as well as their recognition as a decentralized currency. In addition, Kuwait’s Central Bank reiterated its stance to completely ban all cryptocurrency mining activities, Kuwait Times reports.

Several authorities in #Kuwait issued a ban on using #cryptocurrency or any virtual assets as a tool or means of payment or recognizing them as a decentralized currency. The directives issued by the Central Bank of Kuwait, Insurance Regulatory Unit and Ministry of Commerce and… pic.twitter.com/MOlpxnqOP9 — KUWAIT TIMES (@kuwaittimesnews) July 18, 2023

What else is known? According to media reports, the Central Bank sent a directive to local banks, financial and exchange companies urging them to refrain from conducting transactions that use virtual currencies as a means of payment or investment. In addition, the regulator stated that it is unacceptable to provide this type of service to any clients, and also reminded about the absolute prohibition of mining.

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The directives issued by the Central Bank of Kuwait, the Insurance Regulatory Unit, and the Ministry of Commerce and Industry are designed to strengthen anti-money laundering and counter the financing of terrorism (AML/CFT).

Back in 2017, the Ministry of Finance and the Central Bank banned banks and supervised companies from trading bitcoin. And in 2021, the Central Bank called cryptocurrencies a threat to the global financial system and people’s welfare.

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