Ministry of Finance and the Central Bank of Kuwait have asked banking sector and companies under their regulatory purview not to go ahead with any sort of transactions or trading in Bitcoin (TIKER: BTC.EXANTE), CoinDesk reported.
However, neither the Ministry of Finance nor the central bank can regulate Bitcoin trading more generally, as they do not recognize the cryptocurrency. Further, Bitcoin trading is "out of control" of the authorities as it is managed through the internet.
With Bitcoin not backed by a central authority, the central bank has previously asked the Ministry of Commerce and Industry to take measures to inform consumers over the risks of the digital currency, the sources added.
The Arab Times reported on Dec. 16 that Kuwaiti citizens are at the "forefront" of trading Bitcoin following the recent price gains. Sources from the public prosecution office indicated that the Kuwaiti law cannot prohibited online trading as it falls under the laws for "e-programs."
"However, the proceeds of Bitcoin that are wired from abroad to Kuwait are considered illegal and unclean money, because the Kuwaiti law does not consider those currencies," the sources said at the time.