Friday, September 29, 2023

Kuwait bans bitcoin and crypto! Terrorist funding and money laundering were the reasons.

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In one way, America is taking a strict stand on crypto, and on the other hand, Gulf countries like Dubai are providing facilities for crypto in their country, adopting a comfortable and cooperative approach to crypto. Meanwhile, Kuwait has shocked the entire crypto community by banning crypto and bitcoin.

The Kuwait government has given the following reasons behind banning crypto:-

● The Kuwait government has decided to ban bitcoin and crypto because it feels that these currencies are unstable and insecure.

● The Kuwaiti government is also concerned that bitcoin and crypto could be used for money laundering and terrorism financing.

● The Kuwait government says that banning bitcoin and crypto will not harm the country’s economy as the country has enough oil and gas.

If we look at these things of Kuwait, then we see that after 2017 there has been no terrorist attack in Kuwait. No big terrorist organization also operates from Kuwait. No country has even attacked Kuwait except Iraq. Therefore, Kuwait’s argument that they are banning crypto to stop terrorist funding is not correct.

Kuwait’s currency is one of the strongest in the world. That’s why Kuwait is not even afraid of falling in the value of its currency. Talking about money laundering, due to the strength of the currency, people from many countries of the world go to work in Kuwait. They take the facility of bank wire or SWIFT to send money to their country but it is a bit expensive. It is possible that these people are doing this transaction with crypto. Crypto is not recognized in Kuwait. Nor has the government department here given any license to crypto exchanges.

Kuwait is the most preferred destination for bitcoin miners. There is a lot of subsidy on electricity here and the tax on industrialization is very less. Per bitcoin mining remains the most profitable today in Kuwait. Now that the Kuwait government has banned crypto and bitcoin mining, the miners are facing the biggest problem as their hardware machines will be of no use. Generally, bitcoin miners take lawns and set up mining, so they will suffer a big loss. The distance from Kuwait to Dubai is not much and there are possibilities that crypto investors and miners here can go to Dubai. The road from Kuwait to Dubai is 1320 kms, which is a distance of 14 hours, so it will not be difficult to bring the machines here.

Kuwait’s neighboring country, Jordan, has given Binance a license to operate in its country. The distance here is also close to 1348 kms and 15 hours, so this country can also be seen as an option. When China closed crypto, Hong Kong became a crypto hub and this country is now making huge profits from crypto. Same will happen with Kuwait, Kuwait is handing over its earnings to its friendly countries. If Kuwait wanted, it could have controlled it properly by making good rules and regulations on crypto. This would have prevented money laundering and also on the funding of terrorism, but Kuwait thought it right to ban, which would harm crypto investors and miners.

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