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Is crypto legal in Kuwait? Rules & regulation (2026)

Crypto is unclear in Kuwait.

Kuwait enforces an absolute prohibition on all virtual-asset activities following coordinated circulars issued on 17 July 2023 by the Central Bank of Kuwait, the Capital Markets Authority (CMA), and the Insurance Regulatory Unit. The ban explicitly covers use as payment, investment dealings, provision of VASP services, and mining; no licence for any virtual-asset service has ever been issued in Kuwait. Enforcement intensified in April 2025 when the Ministry of Interior formally declared mining illegal under multiple laws, detained 26 individuals, and reported the discovery and seizure of more than 1,000 illegal mining sites.

Last verified Official sources first · MethodologyCompare Kuwait with other countriesAlso in العربية

Legal framework

Coordinated circulars of 17 July 2023 issued by the Central Bank of Kuwait, Capital Markets Authority (CMA Circular No. 10/2023), and Insurance Regulatory Unit (Circular No. 6/2023); reinforced by Ministry of Interior enforcement action of April 2025

Status by sub-area

  • Stablecoins

    None

    Stablecoins fall within the blanket prohibition on virtual assets. No authorisation, issuance, or reserve framework exists; the July 2023 circulars do not carve out stablecoins or asset-backed tokens.

  • Exchanges / VASP

    None

    No crypto exchange or VASP licence has ever been issued in Kuwait, and the July 2023 circulars explicitly prohibit future issuance. Banks and exchange companies are directed to refuse all virtual-asset-related transactions.

  • Token Offerings

    None

    No framework for ICOs, STOs, or any form of token offering exists. Virtual assets are not recognised as financial instruments under Kuwait law, and the CMA prohibition prevents any token-based fundraising.

  • Custody

    None

    No qualified-custodian, segregation, or proof-of-reserves framework exists. Because VASP licensing is prohibited, no entity may legally offer crypto custody services in Kuwait.

  • DeFi

    None

    There is no DeFi-specific regulatory framework in Kuwait. DeFi protocols and front-ends fall under the blanket virtual-asset prohibition; no guidance on DAO treatment or protocol licensing has been issued.

  • Tax

    None

    Kuwait has no personal income tax, capital gains tax, or VAT, so no crypto-specific tax rules or reporting obligations have been enacted. Crypto activities are banned rather than taxed, leaving no operative tax treatment for digital assets.

Key points: crypto & digital assets in Kuwait

  1. July 2023 absolute prohibition

    On 17 July 2023 the Central Bank of Kuwait, CMA, and Insurance Regulatory Unit issued coordinated circulars imposing an 'absolute prohibition' on dealing in virtual currencies as payment, investment, or services, and on all mining activity. The circulars state that no licences have ever been issued and that none may be issued in future.

    cma.gov.kw coindesk.com

  2. No VASP licences permitted

    The CMA Circular No. 10/2023 explicitly prohibits granting any commercial licence to natural or legal persons to provide virtual-asset services within Kuwait, and confirms no such licence was ever granted before the circular.

    lawandjusticegroup.com blogs.loc.gov

  3. April 2025 mining crackdown

    On 22 April 2025 Kuwait's Ministry of Interior issued a formal ban on crypto mining, citing violations of the penal code, telecommunications law, industrial regulations, and municipal rules. Authorities uncovered more than 1,000 illegal mining sites and detained 26 individuals, with the Public Prosecution ordering their detention pending investigation.

    lexismiddleeast.com zawya.com

  4. FATF Recommendation 15 rationale

    Regulators cited compliance with FATF Recommendation 15 on virtual assets and AML/CFT obligations as the primary basis for the prohibition, making Kuwait's ban part of a formal international-standards framework rather than an ad hoc measure.

    blogs.loc.gov arabtimesonline.com

  5. Narrow carve-out for regulated securities

    The July 2023 circulars exclude CBK-regulated securities and CMA-regulated conventional financial instruments from the prohibition. This carve-out does not create any pathway for tokenised or blockchain-based assets.

    cma.gov.kw

  6. No crypto-specific tax framework

    Kuwait imposes no personal income tax, capital gains tax, or VAT. Consequently no crypto-specific tax rules have been enacted; crypto activities remain legally prohibited rather than taxed, and no reporting obligations for digital-asset holdings exist.

    taxsummaries.pwc.com regtechtimes.com

Sources

  1. cma.gov.kw/en/web/cma/cma-board-releases/resolutions-and-regulations/-/cmaboardr
  2. lawandjusticegroup.com/circular-no-10-of-2023/
  3. coindesk.com/policy/2023/07/20/kuwait-regulator-bans-crypto-payments-investment-an
  4. blogs.loc.gov/law/2025/01/regulation-of-cryptocurrencies-in-the-gulf-cooperation-co
  5. lexismiddleeast.com/eJournal/2025-04-23_19
  6. zawya.com/en/special-coverage/the-future-of-cryptos/26-cryptocurrency-miners-de
  7. arabtimesonline.com/news/absolute-ban-on-virtual-assets-to-curb-money-laundering-and-terr
  8. taxsummaries.pwc.com/kuwait/corporate/taxes-on-corporate-income
  9. regtechtimes.com/legality-taxation-cryptocurrency-in-kuwait/

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Orientation, not legal advice: verify against the primary sources linked above. Last verified 24 May 2026. Methodology & how to cite · State of Technology Regulation 2026