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Kuwait’s Ministry of Finance refuses to acknowledge Bitcoin

Kuwait’s ministry of finance and central bank have declined to recognize Bitcoin and banned financial institutions from trading cryptocurrencies.

The central bank prohibits dealings including acceptance of the use of cryptocurrencies for payment or opening portfolios as well as mediation between the parties. Arab Times cites sources that said the encrypted electronic currency is not assures by the banking system or the central bank. The bank earlier on urged the ministry to warn customers of the risks of trading in cryptocurrencies.

Arab Times sources showed that the Central Bank of Kuwait banks and financial institutions under it.

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However, the same source said although Central Bank and Ministry of Finance prohibits companies and banking institutions to trade virtual currencies, they have no authority according to the law of the land to punish anyone trading in cryptocurrency. This is because trading is done online without a central authority or intermediary. Virtual currencies fall under e-governance laws linked to e-programs.

An earlier report by Arab Times showed that Kuwait citizens in the Emirates were at the “forefront of buying and selling bitcoins” after the gains in price this year.

“However, the proceeds of Bitcoin that are connecting from abroad to Kuwait are considering as illegal and unclean money. Since the Kuwaiti law does not consider those currencies,” sources from Kuwait’s Public Prosecution warned.

Kuwaiti banks have recorded growth in credits and deposits although the rate of growth differs from one bank to another. The growth rate of credits and deposits in Islamic banks surpassed those of their conventional banking counterparts.

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Bahrain, a constitutional monarchy of over 30 islands that share the Persian Gulf with Kuwait nearby Kuwait. It has a friendlier stance on cryptocurrencies.

“We are open to Bitcoins,” said Bahrain’s Economic Development Board chief executive Khalid Al Rumaihi earlier this year.

 

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Kerin

Kerin is active blogger and guest writer at Coinpedia. She loves writing new updates, price fluctuations and possible insights. Kerin frequently search, review and share her views among large audience via crypto media firms.

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