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Is crypto legal in Kuwait?

Kuwait's official position is a set of prohibitions. A July 2023 circular from the Ministry of Commerce and Industry bans using crypto for payments, dealing in it as an investment, licensing crypto services and all crypto mining.[1][2][3][4][5]

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Short answer

  • No payments, no investment services. The circular bans using virtual assets as a means of payment and dealing in them as an investment, and tells recipients not to offer such services. [2][3][6]
  • No licences. No licence may be issued to provide virtual asset services, and the circular says none had been issued before. [4][7]
  • Mining is banned outright. The circular and a parallel Capital Markets Authority circular impose an absolute ban on mining. In April 2025 the Interior Ministry and other authorities ran a joint campaign at homes used for illegal mining and confiscated equipment. [5][8][9][10]
  • Holding crypto. The circular is addressed to financial institutions and designated businesses, and asks them to warn customers about crypto transactions carried out outside Kuwait. It does not state in terms whether a person may simply hold crypto. [11][12]

Who is responsible

Authorities whose statements or rules on crypto are cited on this page
AuthorityRole in the sources we cite
Ministry of Commerce and Industry (MOCI) Issued Ministerial Circular No. 1 of 2023 on virtual assets [1]
Capital Markets Authority (CMA) Issued Circular No. 10 of 2023 with the same prohibitions [13]
Central Bank of Kuwait (CBK) Issued a 2023 circular to banks, financing and exchange companies; warned about crypto in 2021 [14][15]
Ministry of Interior Led the 2025 campaign against illegal mining [16][9]

Ministerial Circular No. 1 of 2023

The circular is dated 17 July 2023, is addressed to financial institutions and designated non-financial businesses and professions, and was issued as part of anti-money-laundering efforts. [1][11][17]

  • Virtual assets are defined as digital representations of value that can be traded or transferred digitally and used for payment or investment; digital forms of banknotes and securities are excluded. [18][19]
  • Using virtual assets as a payment instrument, or recognising them as a decentralised currency, is prohibited. [2][20]
  • Dealing in virtual assets as an investment is prohibited, and recipients must not offer that service. [3][6]
  • Licences to provide virtual asset services may not be issued. [4]
  • Securities regulated by the Central Bank and financial instruments regulated by the Capital Markets Authority are exempt. [21]
  • All mining of virtual assets is prohibited. [5]
  • Recipients must keep customers aware that cryptocurrencies have no legal status, are not issued or backed by any government, and are driven by speculation. [12][22][23][24]
  • Breaches fall under Article 15 of Law No. 106 of 2013 on money laundering, in addition to each regulator's own penalties. [25]

Capital Markets Authority and Central Bank

  • The Capital Markets Authority published Circular No. 10 of 2023 on 18 July 2023. It applies the same penalties and the same exemptions, and states an absolute ban on mining. [13][26][27][8]
  • On 17 July 2023 the Central Bank of Kuwait sent its own circular to local banks, financing companies and exchange companies. [14]
  • In May 2021 the Central Bank said crypto-assets were not regulated or supervised by any authority in Kuwait and told banks to raise customer awareness of the risks. [28][29]

The 2025 mining crackdown

  • On 22 April 2025 the Interior Ministry warned that crypto mining was prohibited and that violators would face legal action. [16][30]
  • On 25 April 2025 the Interior Ministry, the electricity ministry and the Public Authority for Industry ran a joint campaign at homes used for illegal mining and confiscated equipment. [9][10]
  • On 29 April 2025 the Cabinet praised the campaign and described mining as strictly prohibited. [31]

What we could not find

On 13 October 2026 we found no official source on:

  • whether the circulars prohibit a person from simply holding crypto without using it to pay;
  • whether a person in Kuwait may lawfully use an offshore crypto platform;
  • how Article 15 of Law No. 106 of 2013 is applied in a particular crypto case;
  • any later amendment or repeal of the 2023 circulars;
  • whether the rules treat stablecoins, NFTs or self-custody wallets differently.

If you know of an official text that answers one of these points, send it through the contact form and we will review it.

How this compares with Dubai and the UAE

In the UAE, crypto firms need a licence: in Dubai from the Virtual Assets Regulatory Authority (VARA)[32], and under federal rules for the same kind of activity elsewhere in the UAE.[33] See Is crypto legal in Dubai? and the list of firms on the VARA register.

Other Gulf countries

Sources

Each note shows the source, its publisher, the date we last checked it and the status of the statement it supports. Status labels are explained in the editorial policy.

  1. Ministerial Circular No. 1 of the Year 2023 Regarding the Procedures Required Concerning Transactions related to Virtual Assets, Ministry of Commerce and Industry, Kuwait, published 17 July 2023. Checked 13 October 2026. Historical Supports: The Ministry of Commerce and Industry dated Ministerial Circular No. 1 of 2023 on virtual-asset transactions 17 July 2023.
  2. Ministerial Circular No. 1 of the Year 2023 Regarding the Procedures Required Concerning Transactions related to Virtual Assets, Ministry of Commerce and Industry, Kuwait, published 17 July 2023. Checked 13 October 2026. Confirmed Supports: MOCI's circular prohibits using virtual assets as a payment instrument or means in Kuwait.
  3. Ministerial Circular No. 1 of the Year 2023 Regarding the Procedures Required Concerning Transactions related to Virtual Assets, Ministry of Commerce and Industry, Kuwait, published 17 July 2023. Checked 13 October 2026. Confirmed Supports: MOCI's circular prohibits dealing in virtual assets as an investment.
  4. Ministerial Circular No. 1 of the Year 2023 Regarding the Procedures Required Concerning Transactions related to Virtual Assets, Ministry of Commerce and Industry, Kuwait, published 17 July 2023. Checked 13 October 2026. Confirmed Supports: MOCI's circular prohibits issuing or granting a licence to a natural or legal person in Kuwait to provide virtual-asset services as a business for itself or others.
  5. Ministerial Circular No. 1 of the Year 2023 Regarding the Procedures Required Concerning Transactions related to Virtual Assets, Ministry of Commerce and Industry, Kuwait, published 17 July 2023. Checked 13 October 2026. Confirmed Supports: MOCI's circular imposes an absolute prohibition on virtual-asset and virtual-currency mining activities.
  6. Ministerial Circular No. 1 of the Year 2023 Regarding the Procedures Required Concerning Transactions related to Virtual Assets, Ministry of Commerce and Industry, Kuwait, published 17 July 2023. Checked 13 October 2026. Confirmed Supports: MOCI's circular requires recipients to refrain from providing virtual-asset investment services to customers.
  7. Ministerial Circular No. 1 of the Year 2023 Regarding the Procedures Required Concerning Transactions related to Virtual Assets, Ministry of Commerce and Industry, Kuwait, published 17 July 2023. Checked 13 October 2026. Historical Supports: MOCI's circular stated that no virtual-asset-service licences had previously been issued as of 17 July 2023.
  8. CMA LAW: Circular No. (10) of 2023 Circular to All Financial Institutions and Specified Non-Financial Businesses and Professions Regarding the Procedures Required for Transactions Associated to Virtual Assets, Capital Markets Authority, Kuwait, published 18 July 2023. Checked 13 October 2026. Confirmed Supports: CMA Circular No. 10 of 2023 states an absolute ban on activities related to mining virtual assets or currencies.
  9. Kuwait ministries conduct joint campaign on illegal cryptocurrency mining activities, Kuwait News Agency (KUNA), published 25 April 2025. Checked 13 October 2026. Historical Supports: On 25 April 2025, the Interior Ministry, Ministry of Electricity, Water and Renewable Energy, and Public Authority for Industry conducted a joint campaign at houses where illegal cryptocurrency mining was taking place.
  10. Kuwait ministries conduct joint campaign on illegal cryptocurrency mining activities, Kuwait News Agency (KUNA), published 25 April 2025. Checked 13 October 2026. Historical Supports: The Interior Ministry said its 25 April 2025 mining campaign confiscated mining equipment.
  11. Ministerial Circular No. 1 of the Year 2023 Regarding the Procedures Required Concerning Transactions related to Virtual Assets, Ministry of Commerce and Industry, Kuwait, published 17 July 2023. Checked 13 October 2026. Confirmed Supports: MOCI's Ministerial Circular No. 1 of 2023 is addressed to financial institutions and designated non-financial businesses and professions.
  12. Ministerial Circular No. 1 of the Year 2023 Regarding the Procedures Required Concerning Transactions related to Virtual Assets, Ministry of Commerce and Industry, Kuwait, published 17 July 2023. Checked 13 October 2026. Confirmed Supports: MOCI's circular requires recipients to keep customers aware of risks from virtual-asset transactions that customers carry out outside Kuwait.
  13. CMA LAW: Circular No. (10) of 2023 Circular to All Financial Institutions and Specified Non-Financial Businesses and Professions Regarding the Procedures Required for Transactions Associated to Virtual Assets, Capital Markets Authority, Kuwait, published 18 July 2023. Checked 13 October 2026. Historical Supports: The Capital Markets Authority published Circular No. 10 of 2023 on procedures for transactions associated with virtual assets on 18 July 2023; the page says it was issued on 17 July 2023.
  14. Instructions Issued by the Central Bank of Kuwait Regarding Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT), Central Bank of Kuwait, published 17 July 2023. Checked 13 October 2026. Historical Supports: On 17 July 2023, the Central Bank of Kuwait issued its virtual-assets transactions procedures circular to local banks, financing companies, and exchange companies.
  15. CBK Issues a Statement on Crypto-assets and their Risks, Central Bank of Kuwait, published 22 May 2021. Checked 13 October 2026. Historical Supports: In its 22 May 2021 statement, the Central Bank of Kuwait said crypto-assets cannot be compared to real currency.
  16. Kuwait warns illegal cryptocurrency mining may drain out power grid, Kuwait News Agency (KUNA), published 22 April 2025. Checked 13 October 2026. Historical Supports: On 22 April 2025, Kuwait's Interior Ministry warned that cryptocurrency mining was prohibited by state laws.
  17. Ministerial Circular No. 1 of the Year 2023 Regarding the Procedures Required Concerning Transactions related to Virtual Assets, Ministry of Commerce and Industry, Kuwait, published 17 July 2023. Checked 13 October 2026. Confirmed Supports: MOCI said the circular was issued within efforts to combat money laundering and terrorist financing.
  18. Ministerial Circular No. 1 of the Year 2023 Regarding the Procedures Required Concerning Transactions related to Virtual Assets, Ministry of Commerce and Industry, Kuwait, published 17 July 2023. Checked 13 October 2026. Confirmed Supports: MOCI's circular defines virtual assets as assets with a digital representation of value that can be traded or transferred digitally and used for payment or investment.
  19. Ministerial Circular No. 1 of the Year 2023 Regarding the Procedures Required Concerning Transactions related to Virtual Assets, Ministry of Commerce and Industry, Kuwait, published 17 July 2023. Checked 13 October 2026. Confirmed Supports: MOCI's circular says virtual assets do not include digital representations of banknotes, securities, or other financial assets addressed elsewhere in the FATF Recommendations.
  20. Ministerial Circular No. 1 of the Year 2023 Regarding the Procedures Required Concerning Transactions related to Virtual Assets, Ministry of Commerce and Industry, Kuwait, published 17 July 2023. Checked 13 October 2026. Confirmed Supports: MOCI's circular prohibits recognizing virtual assets as a non-centralized currency in Kuwait.
  21. Ministerial Circular No. 1 of the Year 2023 Regarding the Procedures Required Concerning Transactions related to Virtual Assets, Ministry of Commerce and Industry, Kuwait, published 17 July 2023. Checked 13 October 2026. Confirmed Supports: MOCI's circular excludes securities regulated by the Central Bank of Kuwait and securities and financial instruments regulated by the Capital Markets Authority from this prohibition.
  22. Ministerial Circular No. 1 of the Year 2023 Regarding the Procedures Required Concerning Transactions related to Virtual Assets, Ministry of Commerce and Industry, Kuwait, published 17 July 2023. Checked 13 October 2026. Confirmed Supports: MOCI's circular says cryptocurrencies do not have legal status.
  23. Ministerial Circular No. 1 of the Year 2023 Regarding the Procedures Required Concerning Transactions related to Virtual Assets, Ministry of Commerce and Industry, Kuwait, published 17 July 2023. Checked 13 October 2026. Confirmed Supports: MOCI's circular says cryptocurrencies are not issued or supported by any government.
  24. Ministerial Circular No. 1 of the Year 2023 Regarding the Procedures Required Concerning Transactions related to Virtual Assets, Ministry of Commerce and Industry, Kuwait, published 17 July 2023. Checked 13 October 2026. Confirmed Supports: MOCI's circular says virtual-asset prices are driven by speculation that can expose them to a sharp decline.
  25. Ministerial Circular No. 1 of the Year 2023 Regarding the Procedures Required Concerning Transactions related to Virtual Assets, Ministry of Commerce and Industry, Kuwait, published 17 July 2023. Checked 13 October 2026. Confirmed Supports: MOCI's circular states that the measures and penalties in Article 15 of Law No. 106 of 2013 apply to anyone who violates the circular, without prejudice to penalties of each regulatory authority.
  26. CMA LAW: Circular No. (10) of 2023 Circular to All Financial Institutions and Specified Non-Financial Businesses and Professions Regarding the Procedures Required for Transactions Associated to Virtual Assets, Capital Markets Authority, Kuwait, published 18 July 2023. Checked 13 October 2026. Confirmed Supports: CMA Circular No. 10 of 2023 says Article 15 of Law No. 106 of 2013 measures or penalties apply to a person who violates the circular, without prejudice to the penalties of each regulatory authority.
  27. CMA LAW: Circular No. (10) of 2023 Circular to All Financial Institutions and Specified Non-Financial Businesses and Professions Regarding the Procedures Required for Transactions Associated to Virtual Assets, Capital Markets Authority, Kuwait, published 18 July 2023. Checked 13 October 2026. Confirmed Supports: CMA Circular No. 10 of 2023 excludes securities regulated by the Central Bank of Kuwait and other securities and financial instruments regulated by CMA from its virtual-asset prohibition.
  28. CBK Issues a Statement on Crypto-assets and their Risks, Central Bank of Kuwait, published 22 May 2021. Checked 13 October 2026. Historical Supports: In its 22 May 2021 statement, the Central Bank of Kuwait said crypto-assets were not subject to regulation or supervision by any authority in Kuwait.
  29. CBK Issues a Statement on Crypto-assets and their Risks, Central Bank of Kuwait, published 22 May 2021. Checked 13 October 2026. Historical Supports: In its 22 May 2021 statement, the Central Bank of Kuwait said it had instructed local banks to increase customer awareness of the risks of crypto-assets.
  30. Kuwait warns illegal cryptocurrency mining may drain out power grid, Kuwait News Agency (KUNA), published 22 April 2025. Checked 13 October 2026. Historical Supports: On 22 April 2025, Kuwait's Interior Ministry said people who did not abide by state laws and regulations would face firm legal action.
  31. Kuwait Cabinet declares June 5-9 as Eid Al-Adha holiday, Kuwait News Agency (KUNA), published 29 April 2025. Checked 13 October 2026. Historical Supports: On 29 April 2025, Kuwait's Cabinet praised the cryptocurrency-mining crackdown and described mining as strictly prohibited by Kuwaiti law.
  32. Law No. (4) of 2022 Regulating Virtual Assets in the Emirate of Dubai, Dubai Legislation Portal, published 28 February 2022. Checked 13 October 2026. Confirmed Supports: A person may not conduct a Dubai virtual asset activity without a VARA permit under Dubai Law No. 4 of 2022.
  33. Cabinet Resolution No. (111) of 2022 Regulating Virtual Assets and the Related Service Providers, UAE Legislation. Checked 13 October 2026. Confirmed Supports: Cabinet Resolution No. 111 of 2022 prohibits a person from engaging in VA activities in the UAE without approval and a licence from the SCA (now the Capital Market Authority) or the applicable local licensing authority.