Cryptocurrency Market Regulations: Kuwait Will not Recognize Bitcoin
Different countries around the world have taken a stance on bitcoin. One of the latest countries to do so is Kuwait, which is actually not supporting the cryptocurrency. The Ministry of Finance in this country has allegedly refused to recognize bitcoin.
Furthermore, local media reported that the Ministry of Finance has actually banned the financial institutions operating in the country from conducting bitcoin trading. The ban came from both the Ministry of Finance and from the Central Bank of Kuwait. The two institutions have stated that the banking industry and companies in general are prohibited from trading in bitcoin.
Can the Ministry of Finance and the Central Bank punish bitcoin trading in Kuwait?
According to local media, the two authorities do not actually have the ability to punish bitcoin trading in the country. The main reason for this is due to the fact that bitcoin is not recognized as a cryptocurrency in the country.
Furthermore, it is very difficult for the authorities to actually monitor bitcoin trading, as naturally it occurs over the internet without control or supervision from authorities.
The Ministry of Commerce and Industry issues warning on the risks of bitcoin
The Kuwait Ministry of Commerce also issued a warning to investors regarding the risks they take when deciding to invest in the cryptocurrency. Previous warning from the country's public prosecution office indicated that those who deal with bitcoin could be questioned regarding the source of the money as bitcoin has been linked to high money laundering risks.
Kuwait is not the only country which has taken such a stance on bitcoin. Several countries have also spoken against the cryptocurrency and have warned investors about the risks associated to it.