Is Crypto Legal in Kuwait?

Kuwait has implemented an absolute prohibition on all cryptocurrency activities within its borders. In July 2023, multiple regulatory authorities including the Central Bank of Kuwait, the Capital Markets Authority, Kuwait's Insurance Regulatory Unit, and the Ministry of Commerce and Industry issued coordinated circulars banning all dealings in virtual currencies (1). This comprehensive ban strictly prohibits using cryptocurrencies as payment methods, investing in digital assets, providing crypto-related services, issuing licenses for virtual asset services, and all cryptocurrency mining activities (1).

The regulatory framework enforced by the Central Bank of Kuwait prohibits the banking sector and companies under its control from trading in cryptocurrencies or facilitating any related transactions (1). These prohibitions were issued to strengthen compliance with anti-money laundering and counter-terrorism financing efforts, specifically to implement Recommendation 15 of the Financial Action Task Force's international standards (1). Securities regulated by the Central Bank of Kuwait and other financial instruments regulated by the Capital Markets Authority are excluded from these prohibitions (1).

"Payment: Strictly prohibits using virtual assets as a payment method or recognizing them as a decentralized currency in the State of Kuwait. Investment: Prohibits dealing with virtual assets as a means of investment and bans offering related services to any customer."

The Central Bank of Kuwait previously issued a statement in May 2021 as part of the Diraya campaign, cautioning against dealing in crypto-assets such as Bitcoin, Ethereum, and Dogecoin (2). The statement emphasized that crypto-assets cannot be compared to real currency as they are not issued by any lawful state, are not regulated by central banks or monetary institutions, and are not accepted as legal tender (2). Violations of these prohibitions result in penalties stipulated in Article 15 of the Anti-Money Laundering Law including fines up to 500,000 Kuwaiti Dinars per violation, license revocation, and temporary or permanent employment bans in relevant sectors (1).

Source:
https://blogs.loc.gov/law/2025/01/regulation-of-cryptocurrencies-in-the-gulf-cooperation-council-gcc-countries-part-two/
https://www.cbk.gov.kw/en/cbk-news/announcements-and-press-releases/press-releases/2021/05/202105221100-cbk-issues-a-statement-on-crypto-assets-and-their-risks

Last updated: 18-10-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.