Crypto Scams in Kuwait
Cryptocurrency fraud targets Kuwait's affluent residents through social media promotions for fake exchanges and unregistered token offerings.
Part of: Crypto Scams
Last reviewed: 1 June 2026
Kuwait has a cautious official approach to cryptocurrency — the Central Bank of Kuwait has not issued specific crypto regulations and discourages their use as a payment instrument. This ambiguity, combined with high internet penetration and financial literacy, creates a market of curious investors who may not know how to verify a crypto platform's credibility.
Fraudulent crypto platforms are promoted heavily on Snapchat, Instagram, and Telegram in Kuwait, often featuring paid celebrities or influencers.
How this scam works on Kuwait
A platform is promoted through paid advertising or influencer partnerships on platforms popular in Kuwait. New users are onboarded smoothly and see immediate apparent returns in their dashboard. Small withdrawals succeed in the early phase.
When users deposit significant sums and attempt large withdrawals, compliance fees or tax certificates are demanded. After payment, additional requirements follow. The platform eventually becomes inaccessible and the promoters stop responding.
Kuwait's large South Asian community is also targeted via WhatsApp groups promoting 'crypto mining investments' or 'arbitrage bots' that supposedly generate passive income from small monthly subscription fees.
Common red flags
- Crypto platform promoted by Kuwaiti influencers with no verifiable regulatory acknowledgement
- Guaranteed fixed daily or weekly returns on crypto holdings
- Withdrawal blocked by compliance fees or tax certificates
- Platform accessible only via a link sent through social media, not major app stores
- Subscription or deposit required to activate 'mining' or 'arbitrage' earnings
- Customer support becomes unresponsive once withdrawal is attempted
How to protect yourself
- Use only internationally regulated exchanges with transparent regulatory disclosures
- Verify any celebrity endorsement through the celebrity's verified channels before acting
- Attempt a meaningful withdrawal before depositing substantial sums
- Report unregulated crypto solicitations to the CMA Kuwait
- Be especially wary of subscription-based passive income crypto products
How to report it
- Report to the CMA Kuwait at cma.gov.kw
- File a cybercrime complaint with the Ministry of Interior CID
- Report fraudulent social media ads to the platform (Snapchat, Instagram, Telegram)
Frequently asked questions
Kuwait does not regulate crypto — does that mean all crypto platforms are unregulated there?
Internationally regulated exchanges operate globally regardless of local crypto policy. Platforms regulated by the FCA (UK), MAS (Singapore), or SEC (USA) offer far greater protection than unregulated local platforms.