Kuwait forbids the trading of cryptocurrencies and virtual assets

The “absolute prohibition” of nearly all crypto operations in Kuwait has been formally reaffirmed by the Capital Markets Authority of Kuwait.

The most recent state to forbid almost all transactions involving cryptocurrencies like Bitcoin BTC is Kuwait.

The Capital Markets Authority (CMA), the primary financial regulator in Kuwait, released a circular on the oversight and issuance of virtual assets in the nation on July 18.

The commitment to “absolute prohibition” on significant cryptocurrency use cases and operations, including as payments, investments, and mining, was reaffirmed by the CMA in the circular.

The circular also prohibits regional authorities from giving any permits permitting companies to offer virtual asset services as a for-profit enterprise.

The notification notes that securities and other financial instruments governed by the Central Bank of Kuwait and the CMA are not subject to the most recent bans at this time.

Customers were also expected by the CMA to exercise caution and knowledge of the hazards related to virtual assets in addition to the prohibitions. A particular concern raised by the agency was cryptocurrencies, which it claimed “don’t carry a legal status and are not issued or supported.”

Article 15 of Law No. 106 of 2013 lays out the penalty for breaking Kuwait’s anti-money laundering regulations, the regulator added.

According to the regulator, Kuwait’s new rules are in line with the country’s efforts to thwart money laundering and terrorist financing. The National Committee for Combating Money Laundering and Financing of Terrorism’s study findings addressing the commitment to implementing Financial Action Task Force recommendation 15 were also mentioned by the CMA.

The CMA’s crypto restrictions, according to local media, are a part of a new inter-departmental crypto prohibition involving multiple supervisory authorities in Kuwait. According to reports, the Central Bank of Kuwait, the Ministry of Commerce and Industry, and the Insurance Regulatory Unit have all released similar circulars.

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