Kuwaiti Finance Ministry Bans Financial Institutions From Crypto Trading

Kuwait’s Ministry of Finance has announced that it is prohibiting financial institutions from trading virtual currencies like Bitcoin, Ethereum, and Litecoin because it does not recognize them as legal tender.

According to sources from the ministry added that the Central Bank of Kuwait also bans financial institutions, banks, and their affiliated companies from trading the number one cryptocurrency Bitcoin amidst the recent sharp hikes in its price.

Sources from the ministry clarified that both the country’s central bank and the ministry cannot regulate Bitcoin trading because they do not recognize the virtual currency as a financial tool. Furthermore, the trading of the virtual token is done through the Internet so it is already deemed ‘out of jurisdiction’ by the regulators.

The central bank, meanwhile, has previously requested to the Ministry of Commerce and Industry to create strategies on how to inform the public about the risks associated with dealing with Bitcoin as a result of the absence of a central authority to back it up. This is because online trading is not prohibited under Kuwaiti law because it is covered by the laws for ‘e-programs.’

Based on a recent report by the Arab Times, Kuwaitis have been very much involved, in fact, in the forefront of buying and selling activities of Bitcoin, particularly due to the phenomenal rise of the price of the number one digital currency.

The price of the leading virtual currency has already hit the $17,000 (KD5,100) level and is expected to expand further in the next few days.

This projection is driven by the fact that the original and most famous cryptocurrency was already incorporated and adopted as a currency in the Chicago Stock Exchange in the US.