Kuwait

In Kuwait, cryptocurrencies and all related virtual asset activities are absolutely prohibited. This means that holding, trading, investing in, or using cryptocurrencies for payments is illegal, as confirmed by coordinated circulars issued in July 2023. These virtual assets have no legal status and are not recognized for commercial transactions by the Ministry of Finance. The Central Bank of Kuwait (CBK) and the Capital Markets Authority (CMA) are the principal regulatory bodies enforcing this ban. Their directives prohibit banks and regulated entities from engaging in any cryptocurrency dealings. This regulatory stance is reinforced by several national laws, including those pertaining to Anti-Money Laundering (AML), with ongoing enforcement efforts against prohibited activities such as illegal mining. Given the outright ban, there are no specific tax laws or frameworks that apply to cryptocurrencies for individuals. All crypto-related activities, including any potential capital gains from selling or income derived from crypto, are prohibited, making any discussion of personal income tax irrelevant. While Kuwait generally does not impose personal income tax, the overriding factor for crypto is its illegality. Foreign corporate entities are subject to a standard 15% corporate tax, but they too are explicitly banned from engaging in any crypto activities within Kuwait. Value Added Tax (VAT) does not apply to crypto transactions, as such activities are prohibited. Every facet of cryptocurrency engagement is explicitly banned. This includes activities such as staking, mining, participating in Decentralized Finance (DeFi), and dealing with Non-Fungible Tokens (NFTs). Converting crypto to fiat currency or swapping one cryptocurrency for another is also prohibited. Consequently, there are no distinctions for short-term versus long-term gains, no holding period benefits, and no tax exemptions or thresholds, as all these activities are unlawful.