Since 2009, cryptocurrency regulation has been a source of contention. Let us know ‘Is Kuwait Accepting Bitcoin?’.
Many countries are opposed to the use of bitcoin for commerce, and Kuwait has been at the top of the list since late 2017. Kuwait prohibits the usage of bitcoin because it is too expensive, volatile, and risky for the country.
The reason for Kuwait’s cryptocurrency restriction is as follows:
There are several reasons why the Kuwait government has not to accepting bitcoin legal status, including economic instability and concerns about criminal activity. The main points of contention are listed below and will be discussed one by one.
1. The Shariah
In Kuwait, Islam is practiced by the vast majority of the population. Many people have debated whether bitcoin is halal or haram, however, anything that involves elements of unfaithfulness, gambling, or usury is haram according to Islamic law.
This discussion, however, differs from country to country. Some Islamic countries do not consider Bitcoin to be haram and allow it to be traded. Supporters and opponents are two categories of people. Crypto is a money innovation, according to proponents, because it brings wealth to people who participate. Skeptics argue that it is haram in Islam since it is a usury company. Usury is prohibited in several Quranic verses.
My opinion on whether or not it is prohibited in Islam is a long discussion, however, digitalization has brought great innovation to the globe, whether in the medical sector, banking industry, or now in currency, it has brought smooth processes and the best for e-commerce platforms.
2. CKB Banking
Cryptocurrency offers strong privacy to people for the transaction and it should be very difficult to monitor and control. This is the main reason the central bank of Kuwait does not accepting bitcoin for trading. People hide their identity from crime through this transaction and the dark web is one of them. Central Bank of Kuwait start an awareness program which is named as Diraya campaign.
The campaign’s major goals are to raise awareness, identify potential problems, and educate people about the dangers of not following safety and security rules when using modern technology. Regulations prohibit disclosing account and personal transaction information to unknown parties or responding to messages from unknown sources since this would be a violation of data privacy and banking protection laws.
3. Terrorism Funding
The Kuwaiti government believes that digital money has a great level of anonymity and that no one buys and sells cryptocurrencies at high rates. Threat to the public: public funds could be used to sponsor terrorism.
Trading indirectly is not permitted by the government; it is contingent on a person’s viability. Banks and other organizations, on the other hand, impose obvious limitations. Now A problem has arisen. Why do terrorists benefit from cryptocurrency? On the one hand, digital currency claims to provide high levels of secrecy, but on the other, it is used by terrorist organizations, so how is this possible?
4. Buying Forbidden Products
Many reports suggest they utilized excessive money due to the huge currency volatility, according to the newest news. The use of cryptocurrencies, such as Bitcoin, to buy and sell forbidden products and services on the dark web is a significant component of cyberterrorism. Experts predict that the dark web will attract terrorists because of its global reach, speed, and degree of anonymity. Terrorists are likely to employ cryptocurrency on the dark web since it is a highly effective and clandestine platform.
5. Money Laundering
When you acquire coins like Dogecoin or Bitcoin, you are not asked about your source of income, whether it is legal or not. You only need a specific amount of money to purchase something, and the price of crypto grows over time due to fluctuation. As a result, many people who get money through illicit means such as gambling, crime, and other criminal activities invest in cryptocurrency because it does not have a centralized structure like banks.
6. Its own digital money is being developed
Many countries have stolen the idea for this technology, including China, which Kuwait could have used to grow its digital market. A large number of people are interested in investing in cryptocurrency, which is beneficial for government support in the tech industry. However, this is unclear. The government only has a strong thorough tax system in place for domestic business, and no such structure exists for digital money.
Conclusion:
To summarise, crypto has no legal standing in Kuwait. Because a Kuwaiti citizen buys and sells crypto through another source, the government does not outright prohibit it, but the banking and financial system do. If Kuwaiti organizations impose severe limits on how these exchange systems operate, there will be a plethora of crypto exchange platforms.
The only option is for the government to take active action and ban all exchange systems, for the government to legalize crypto for income production as Israel does, or for the government to establish its digital system.
