Kuwait has completely banned cryptocurrency mining despite being one of the least expensive regions for professional miners. Payments in Bitcoin and other crypto assets are also still prohibited. What motivated this decision?
Ban on Cryptocurrency Mining in Kuwait
Like other Gulf countries, Kuwait has never really stood out for its openness to the cryptocurrency sector. Institutions were not allowed to hold cryptocurrencies, and the government had warned about the supposed dangerousness of crypto assets. However, a new milestone has just been reached with a total ban on mining cryptocurrencies, the decision having fallen this week. However, crypto mining was very inexpensive in the region, thanks in particular to low electricity rates.
It is therefore now illegal to mine cryptocurrency in Kuwait. Companies also cannot offer services related to cryptocurrencies, and it is prohibited to use these assets for payments. We can therefore hold cryptocurrency on the territory… But that’s about all, the vast majority of uses being prohibited. So while it cannot be said that cryptocurrencies are prohibited in Kuwait, it is however, so to speak, the case – just like in China, which has also applied very restrictive rules.
The Capital Markets Authority believes that crypto assets facilitate money laundering, and thus justify this measure. Electricity costs seem to have unofficially influenced the government’s decision. These prohibitions only apply to cryptocurrencies, according to the publication:
“Financial securities regulated by the Central Bank of Kuwait and other securities and financial instruments regulated by the Capital Markets Authority are excluded from this prohibition. »
👉 To go further – Introduction to cryptocurrency mining
The Just Mining platform becomes Meria
The other Gulf countries more open to cryptocurrencies?
Relations between cryptocurrencies and Gulf countries have long been uncertain. But in recent years, the region seems to be opening up to the sector – in a controlled way. As often, it is the giant Binance that gives clues to the attitude of local governments. The company has in fact successively obtained licenses in Bahrain and Abu Dhabi. For its part, Dubai had said it wanted to become the “capital of Web3”.
What is more, we have seen in recent months a certain polarization of the world in terms of cryptocurrencies. The Middle East, and Asia in general, seem to be opening up to what they see as an opportunity to break away from the dollar. But on the Western side and in the United States, the possibility of a “de-dollarization” worries. Kuwait’s decision therefore seems to run counter to more global trends.
👉 Listen to this article and all other crypto news on Spotify
Confused and overwhelmed by cryptocurrencies? 🤔
Spot opportunities and make informed investment decisions 🔎
Source: CoinDesk
Newsletter 🍞
Receive a summary of crypto news every Monday by email 👌
What you need to know about affiliate links. This page may feature investment-related assets, products or services. Some links in this article may be affiliated. This means that if you buy a product or register on a site from this article, our partner pays us a commission. This allows us to continue to offer you original and useful content. There is no impact on you and you can even get a bonus by using our links.
Investments in cryptocurrencies are risky. Cryptoast is not responsible for the quality of the products or services presented on this page and could not be held responsible, directly or indirectly, for any damage or loss caused following the use of a good or service highlighted in this article. Investments related to crypto-assets are risky by nature, readers should do their own research before taking any action and only invest within the limits of their financial capabilities. This article does not constitute investment advice.
AMF recommendations. There is no guaranteed high return, a product with high return potential involves high risk. This risk-taking must be in line with your project, your investment horizon and your ability to lose part of this savings. Do not invest if you are not ready to lose all or part of your capital.
To go further, read our Financial Situation, Media Transparency and Legal Notices pages.
Journalist at Cryptoast, I fell into the pot of cryptocurrencies a few years ago. I am passionate about the innovative technologies that stem from the blockchain and I like to find the most crispy information to share with you.
Marine Debelloir
2484 items
