Alongside technologies such as artificial intelligence (AI), the blockchain is another new potent technology that holds the promise of having a significant disruptive impact on various industries. Potentials for the use of the blockchain are many, and its utilization within industry is growing increasingly wider. At present, various industries are experimenting with the use of the blockchain for purposes of increasing the speed, security and accuracy of data transfer, as well as data storage and recording of transactions. However, blockchain-based cryptocurrencies, such as Bitcoin among many others, carry with them a risk of money laundering and financing of terrorism (MLFT).

Given the novelty of the blockchain as a technology, over the short- and medium-term, Kuwait-based entities planning to use the blockchain will likely face significant technical hurdles and an on-going compliance uncertainty. Entities subject to Kuwait Law No. 106/2013 on Anti-Money Laundering Operations that come into contact with blockchain-based cryptocurrencies will need to comply with anti-money laundering and combating the financing of terrorism regulations while staying apace of industrial developments

Blockchain : Peer-to-peer shared (“distributed” or “decentralized”) digital ledgers that use cryptographic algorithms for verification of the creation and transfer of digitally represented assets.