Kuwait Ministry of Finance: Does not recognize bitcoin

nBankruptcy commentary: According to “Arab Times” reported that the Kuwaiti Ministry of Finance said it did not recognize bitcoin, and prohibit financial institutions trading cryptocurrencies. Kuwaiti citizens are at the “cusp of bitcoin” transactions due to the recent strong upward momentum in Bitcoin, but because Kuwaiti citizens do not recognize bitcoin and Bitcoin transactions are conducted over the Internet, neither Kuwaiti Treasury nor the Central Bank Generic Bitcoin transactions are regulated.n
nTranslation: Clovern
The Kuwaiti Ministry of Finance reportedly said it did not recognize bitcoin and banned financial institutions from trading cryptocurrencies.n
The “Arab Times” recently reported that Kuwaiti Ministry of Finance sources said the Central Bank of Kuwait does not allow financial institutions, banks and affiliates to follow the recent tide of price spikes for bitcoin transactions.n
However, the source added that since it does not recognize cryptocurrencies, neither the Ministry of Finance nor the central bank can regulate the Bitcoin transactions in a general way. In addition, the source said, bitcoin transactions are managed via the Internet and are outside the government’s “control.”n
Since Bitcoin was not supported by a centralized agency, the central bank had previously asked the Ministry of Commerce and Industry to take steps to inform consumers about the risks of digital currency.n
The “Arab Times” reported on December 16 that Kuwaiti citizens followed the recent rise in Bitcoin prices at the “cusp of bitcoin” transactions. Information provided by the Public Prosecution Service shows that Kuwaiti law can not prohibit online transactions because it falls under the category of “electronic project” laws.n
Sources pointed out:n
n”However, Bitcoin revenue from wire transfers abroad to Kuwait is considered to be illegally suspect funds because Kuwaiti law does not recognize these currencies.”n
nIn other Middle East countries, the UAE’s central bank made it clear in February this year that the country will not ban Bitcoin.n
Before the announcement, UAE’s central bank introduced a digital payment framework on January 1 stating that “all virtual currencies (and any transactions) are forbidden.”n
In its update, the bank said: “These rules do not include ‘virtual currency’ of any type of digital unit, value measure or stored value that is defined as a medium of exchange.”n

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