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Kuwait to study implications of trading in Bitcoin currency

January 9, 2018

MoCI closely monitoring local firms’ ‘Bitcoin’ advertisements

Ministry of Commerce and Industry is coordinating with Central Bank of Kuwait to study the implications of the electronic currency market trading in “Bitcoin”.

They discussed the market extensively to make a decision in light of the rapid developments in the virtual currency markets particularly Bitcoin, reports Aljarida daily quoting informed sources.

They said the coordination is in preparation for a study on the electronic currency market that is becoming widely popular, stressing that it is important at the moment to address the electronic currency markets and ways to deal with them as well as the associated risks.

When asked about criminalizing the use of Bitcoin, the sources said the issue is still under study, and the ministry is seeking to rectify the complete perception of the market. They indicated that the currency is not officially recognized and has no legal cover, adding, “So how can trade be conducted when the dealers are not protected from losses they might incur by trading in Bitcoin?”

Meanwhile, an official from Ministry of Commerce and Industry disclosed that the ministry has been closely monitoring the ads of local companies that promote dealing in Bitcoin, after several companies posted ads on social media to open trading accounts for commissions in addition to other companies preparing to formally adopt trade in Bitcoin.

It is expected that the ministry will raise awareness about the risks associated with those companies due to lack of banking and legal cover for them to deal in virtual currencies such as Bitcoin and other new currencies in addition to lack of recognition in the official and central banks as well as lack of regulators to set their prices.

Meanwhile, the Ministry of Commerce and Industry has instructed the disciplinary committee tasked to investigate auditors to rethink its decision to refrain from investigating the complaint filed by a number of shareholders who accused an auditor of manipulating the accounts in favor of a partner, reports Al-Rai daily quoting informed sources.

The ministry took this step after receiving the petition of some shareholders against the decision of the committee. The ministry gave instruction to refer the criminal part of the complaint to the Public Prosecution according to Item Two of Article 21 of law number 5/1981 on organizing the work of auditors.

On Dec 26, 2017; the daily published an article about the decision of the committee which refused to punish the accused auditor under the pretext that the incident occurred five years ago, saying this is beyond the grace period for shareholders to uncover violations and submit a complaint.

However, the complainants did not accept the decision of the committee; arguing the auditor presented to them an inaccurate budget five years ago but they were not aware of this at the time.

arabtimesonline