Kuwait Bans Bitcoin and crypto payments, investement and mining

[OmegaStarScream]

So it looks like Kuwait has decided to ban crypto payments, investments, and also mining. The reason? is the usual:

Kuwait has prohibited the use of crypto for payments or investment to combat money laundering, according to a circular by the country's financial regulator issued on Monday.

As the article states, any violations of the prohibitions would result in penalties.

I personally wasn't expecting this, especially with their neighbor (UAE and Bahrain) doing the total opposite.

[Oshosondy]

Rubbish. I am referring to the Kuwaiti government.

They can ban Kuwaiti dinar and all the foreign reserves they have too. All of them are used by criminals.

Bitcoin do not depend on a single country.

I personally wasn't expecting this, especially with their neighbor (UAE and Bahrain) doing the total opposite.

If some bitcoin critics are in government, there is nothing that can be done. But they like or not, a day is coming that more countries out of scanty that do not support bitcoin will support bitcoin and they will likely be among. Time will speak.

[Z390]

That's Kuwait's problem, they are not even noticed as one of the most adopting Bitcoin countries so it's their choice and in fact if I came across this new online I won't come on here and make a topic about it because it's Kuwait, it's not America, Singapore or China, this isn't also the first Ban on Bitcoin mining, sooner or later it will be lifted.

Especially when they start noticing what they are missing with web3 and others, I believe they have no clue about blockchain technology, few countries where this stupid before, until they understand what they are missing.

[noorman0]

-snip-
If some bitcoin critics are in government, there is nothing that can be done. But they like or not, a day is coming that more countries out of scanty that do not support bitcoin will support bitcoin and they will likely be among. Time will speak.

However, Kuwait is one of the 2nd richest Muslim countries. Despite this new policy I'm not sure it will create a backlash because it's not necessarily that bitcoin is of critical interest among the population. On the other hand I believe almost every citizen in Kuwait has achieved their financial freedom.

The important thing is that there are no dirty practices in the political system, I think their policies result from common sense than other corrupt countries, and rejecting bitcoin is not controversial at all.

[cryptoaddictchie]

Lots of overseas who work there ar eprobably thrilled with the news. Ive got some cousins and friends who work there and this will be a bad news for them since doing crypto as a sideline is definitely a worth hustle at all. Anyway Im sure this is just another trick of their government or worst they dont see any progress with whats happening out there on blockchain and web3 involvement. Maybe it will be the same as China who banned and will open again once they realize they are left behind.

[hd49728]

So it looks like Kuwait has decided to ban crypto payments, investments, and also mining. The reason? is the usual:

Kuwait has prohibited the use of crypto for payments or investment to combat money laundering, according to a circular by the country's financial regulator issued on Monday.

They can ban it because they are government in that nation but they should borrow better reasons for this prohibition against cryptocurrency. Banning it because of money laundering is just gibberish as they don't ban fiat currencies with same reason.

I don't expect it too because Middle East nations are more friendly with Bitcoin and cryptocurrency than Europe and North America. Many blockchain summits, conferences, companies were hosted and operated in Middle East. This regulatory movement from Kuwait is very strict and not expected.

[Lucius]

I can't say if there's any interest in Kuwait when it comes to Bitcoin, whether it's ordinary people or companies, but I have to admit that apart from a few mentions when it comes to mining, I haven't encountered any news from that country when it comes to Bitcoin. It's also hard to say why they decided to make such a drastic decision, but I wouldn't be surprised if some of the local rich lost a bunch of money in some crypto investment, and this is kind of revenge for it.

However, as always for ordinary people, this does not have to be a problem because the BTC transaction does not require the approval of the government or any politician, and those smart will always find a way to continue trading with BTC and stay under the radar.

The only thing I'm interested in is what are the penalties for those caught in the offense - I hope it's not something of the type of punishment that exists in that part of the world.

[livingfree]

I guess the other countries that are also looking for some reasons to ban Bitcoin and other crypto payments will have to resort with the same reason.

And that's to avoid money laundering.

They're just going to widen the reason so that people wouldn't blame their government for having this decision. While it's true that UAE has an opposite stance but they have a different focus on its industries I guess and doesn't see the opportunity from within.

[Charles-Tim]

It's also hard to say why they decided to make such a drastic decision, but I wouldn't be surprised if some of the local rich lost a bunch of money in some crypto investment, and this is kind of revenge for it.

Which means the government failed to understand what bitcoin actually is. If they like, they can ban other cryptocurrencies, but bitcoin has been achieving all-time-high. If they do not sell in panic and during loss, the price will appreciate and they will later gain.

 They should consider bitcoin as a speculative asset, but in long term it is a store of value. I wonder if trading fiat and stocks is accepted in the country if that would be the reason. I think what that is stated above would likely be the reason why cryptocurrencies are banned in the country. But that is just novices understanding and fiat is worse regarding that.

However, as always for ordinary people, this does not have to be a problem because the BTC transaction does not require the approval of the government or any politician, and those smart will always find a way to continue trading with BTC and stay under the radar.

There is nothing a country ban that people will not still be able to do. Cocaine and many drugs are banned but people are still able to buy and sell it among themselves. In my country, marijuana is banned, but you will see high school students taking it. How about cryptocurrencies which are easier to get. All that is needed is decentralized exchanges if it is a total ban. But if it is an implicit ban, their citizens can still trade within themselves on centralized exchanges too.

The only thing I'm interested in is what are the penalties for those caught in the offense - I hope it's not something of the type of punishment that exists in that part of the world.

I will like to know about this too. Also I will like to  know if it is a total or an implicit ban.

It can even be like China that bitcoin is banned but Chinese can hold it as a property legally  . Do not mind me, that is just a joke. But it can be real too.

[stompix]

The only thing I'm interested in is what are the penalties for those caught in the offense - I hope it's not something of the type of punishment that exists in that part of the world.

You mean this part?

At about 08:00, prisoners are hooded with a black hood, unlike the British style white hood and their arms and legs are pinioned (strapped). New steel gallows were fitted in the early 2000s and have been used.....<>

I hope they don't invent a punishment like getting as many lashes as the price of bitcoin is in their currency!

But they do have cheap energy, and a ton of it, the climate is not that great but with nearly free energy you can afford cooling too, I will see if our fellow miner knows more about this.

[NotATether]

Most Gulf countries are like that actually - if crypto is not improving their economy by supplying an influx of blockchain companies and startups, they'll just ban it and be done. Most of these countries do end up reconsidering their bans as the crypto landscape changes shape and new policies & developments are made (the most infamous example being Russia which has banned and unbanned crypto no less than four times over the last 10 years).

[348Judah]

So it looks like Kuwait has decided to ban crypto payments, investments, and also mining. The reason? is the usual:

Kuwait has prohibited the use of crypto for payments or investment to combat money laundering, according to a circular by the country's financial regulator issued on Monday.

As the article states, any violations of the prohibitions would result in penalties.

I personally wasn't expecting this, especially with their neighbor (UAE and Bahrain) doing the total opposite.

I don't know why some countries were still living in their wildest dream till date thinking that cryptocurrency is an avenue for money laundering when this shady acte has always been in use over years right before the introduction of bitcoin to the world, people steal, hide and abuse financial laws and regulations in many ways, but they are using this their own regulations to affect the individual citizens and go would love to take in part of this financial freedom and dominion than the one being controlled by the government, it's a pity also that government were too blind to see the needs of the people in wanting the establishement of a decentralized currency, the most countries of the middle east like Abu Dhabi, Qatar and Dubai were i think would have more strict rules against bitcoin have the most amazing interest in cryptocurrency, i think this also have to do with exposure and the calibre of those ruling in a particular country.

[Redcoinn]

Rubbish. I am referring to the Kuwaiti government.

They can ban Kuwaiti dinar and all the foreign reserves they have too. All of them are used by criminals.

Bitcoin do not depend on a single country.

I personally wasn't expecting this, especially with their neighbor (UAE and Bahrain) doing the total opposite.

If some bitcoin critics are in government, there is nothing that can be done. But they like or not, a day is coming that more countries out of scanty that do not support bitcoin will support bitcoin and they will likely be among. Time will speak.

Bitcoin in Kuwait is in a tricky situation. The Kuwaiti government banned financial institutions from trading Bitcoin during its run in late 2017 due to high volatility, and Bitcoin is not legal tender in the country.

In May of 2021, the Central Bank of Kuwait (CBK) issued a statement warning the public about the volatility in cryptocurrency markets, reminding them that cryptos are not considered "real currency" that is regulated by state authorities, such as banks or monetary institutions."

However, Bitcoin is legal for residents of the country and citizens can buy and sell cryptocurrency without restrictions from supported exchanges like BitOasis, coinmama, paybis.

buybitcoinworldwide.com/kuwait

[ZAINmalik75]

So it looks like Kuwait has decided to ban crypto payments, investments, and also mining. The reason? is the usual:

As the article states, any violations of the prohibitions would result in penalties.

I personally wasn't expecting this, especially with their neighbor (UAE and Bahrain) doing the total opposite.

Kuwait has different political and financial conditions then UAE and Bahrain. Maybe the level of money laundering might increased there. That's why the governments took these steps to ban all of the things. And believe me, i belong to the same continent and these ban are temporary and will be lifted after some time.

Maybe when the time will be right. Because these steps are made by some of the people with great power who would make such things happen. And every time such bans has some agendas behind them. The main thing came to my mind is only. There must be some illegal activities that has forced them to make such steps.

Otherwise, unlike US, China, they can not manipulate market, because the traffic or i would say legal traffic or crypto users who add volume to crypto industry from Kuwait are less.

[Poker Player]

I personally wasn't expecting this, especially with their neighbor (UAE and Bahrain) doing the total opposite.

I think so too. We will have to see what influence this has in the area, but I do not think that the United Arab Emirates, with the amount of business that Dubai moves with cryptocurrencies, will change its policy. I would like to think that eventually in Kuwait they will realize their mistake and reverse the policy but you never know.

Most Gulf countries are like that actually - if crypto is not improving their economy by supplying an influx of blockchain companies and startups, they'll just ban it and be done. Most of these countries do end up reconsidering their bans as the crypto landscape changes shape and new policies & developments are made (the most infamous example being Russia which has banned and unbanned crypto no less than four times over the last 10 years).

Lol. Let them take a cue from Dubai then, instead of beating around the bush. 

[Flexystar]

It doesn’t matter at all. This country had no significant contribution in the Bitcoin market at all. I don’t think having its geography near to UAE makes any different as well? They are not dependent country on the nearby countries of UAE so it really matters nothing. In fact any countries adoption or non adoption doesn’t mean anything to anyone. I believe this is going to be just another news in getting printed at some corner of the news paper and thrown in the dustbin after a day or so.

In fact most of the internationals would have never came to know about this news if it wasn’t posted here. It’s just the forum where we hear such news.

Frankly I never go online try to dig information whether any country has banned it or not. It means nothing. Bitcoin doesn’t really care about it.

[CryptoHeadlineNews]

Kuwait is not the first country to ban Bitcoin for the reason of it been used for money laundering, as we have had many countries do the same and more to do so in the future, but despite what, it still doesn't change what Bitcoin stands for (i.e Make individuals have control over there funds) because both gold and fiat have been used for money laundering since many centuries ago, but why haven't any of them been ban if I should ask? It's simply because governments has control over it unlike Bitcoin that they don't, and as such will find every means just to eradicate it.

Note: Bitcoin is not the problem, but the individuals are the problem we have in our various countries

[jrrsparkles]

So it looks like Kuwait has decided to ban crypto payments, investments, and also mining. The reason? is the usual:

Kuwait has prohibited the use of crypto for payments or investment to combat money laundering, according to a circular by the country's financial regulator issued on Monday.

It seems there is no valid reason to ban the crypto currency transactions, mining as well as approving any platforms to provide services related to cryptos unless they are panning to execute it for too long. The government claims that they are doing it to combat money laundering but I feel they are not benefiting from having cryptos like their neighbors (UAE, Saudi) because they managed to generate few billions invested into their country.

The only thing I'm interested in is what are the penalties for those caught in the offense - I hope it's not something of the type of punishment that exists in that part of the world.

Definitely not, they will just go with the huge money as penalty because AFAIK the mostly they will go for such penalties that we remember about middle east mostly for disciplinary cases

[Sim_card]

Kuwait shouldn't give a silly excuse for placing a ban on bitcoin that it is due to money laundry. Before bitcoin came into existence, would Kuwait government say that there wasn't money laundry. The major issue is the decentralized nature of bitcoin that cannot be accessed by government to track who uses it,they have seen that their government can't control bitcoin users and it has become a threat to them. They should have regulated it instead of banning it. This isn't a problem to bitcoin adoption or price because other countries and individuals will keep on adopting bitcoin. I feel for Kuwait because they have missed out in the opportunities that bitcoin gives to its users. A digital world needs a digital currency.

[Zlantann]

So it looks like Kuwait has decided to ban crypto payments, investments, and also mining. The reason? is the usual:

Kuwait has prohibited the use of crypto for payments or investment to combat money laundering, according to a circular by the country's financial regulator issued on Monday.

I don't expect all nations to accept Bitcoin at the same time. Some will be friendly now others will be in the future. Kuwait is claiming it wants to abide by the rules of the Financial Action Task Force (FATF) to curb financial practice, terrorism financing, and money laundering. But they are been too harsh to the crypto community because FATF recommends strict supervision of the financial activities of crypto operations and not an outright ban. In other nations, regulators are coming up with advanced methods of monitoring, tracking, and recovery of illicit crypto funds, instead of a ban. They will lose most of the opportunities that cryptocurrency offers. The good news is that this year more countries are opening up to Bitcoin. Affected businesses and miners will move to friendlier neighboring nations like UAE and others to avoid sanctions or penalties.