Kuwait Bans Cryptocurrencies, Putting An End To Virtual Assets

Kuwait has enacted a complete ban on virtual asset transactions, making it illegal to digitally trade, transfer, or invest cryptocurrencies in the country. The Capital Markets Authority (CMA) also noted that the ban would extend to mining cryptocurrencies.

Non-fungible tokens (NFTs) are included in the ban, but the legislation does not extend to digital representations of physical currencies, securities, or other financial assets.

The new law aligns with Kuwait’s 2013 legislation concerning money laundering and terrorist financing. People breaching the regulations could face severe penalties, including fines and even imprisonment.

MENA countries, including Algeria, Egypt, Morocco, Tunisia, Saudi Arabia, Qatar, Jordan, Turkey, Iran, and Iraq, have all imposed restrictions or bans on virtual assets over the last few years. However, in stark contrast, Bahrain and the United Arab Emirates have encouraged the use of digital assets, and cryptocurrencies in particular.

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Binance received a Dubai operating license in March 2022, around the same time the Virtual Assets Regulatory Authority was established there. Meanwhile, Bahrain’s Central Bank released a paper on virtual assets in November 2020, outlining how they could best be regulated and used in the Gulf state.