The Capital Markets Authority (CMA) of Kuwait has issued a circular imposing an “absolute prohibition” on most cryptocurrency operations, such as payments, investments, and mining. However, the ban does not apply to regulated securities and financial instruments.
The Capital Markets Authority (CMA) of Kuwait has recently issued a circular banning most cryptocurrency operations, including Bitcoin. The ban includes payments, investments, and mining, among other major use cases related to cryptocurrencies in the country. Additionally, the CMA has prohibited local regulators from granting licenses to commercial businesses for offering virtual asset services.
The ban on cryptocurrency operations in Kuwait does not extend to securities and other regulated financial instruments overseen by the Central Bank of Kuwait and the CMA. However, the circular stresses the importance of exercising caution and being aware of the risks involved in dealing with virtual assets, particularly cryptocurrencies.
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The regulator emphasizes that cryptocurrencies lack legal status, aren’t issued or backed by any asset or issuer, and their prices are driven by speculation, making them susceptible to sharp declines.
The CMA highlights that violating Kuwait’s Anti-Money Laundering laws may lead to penalties outlined in Law No. 106 of 2013. The new regulations align with the country’s anti-money laundering and counter-terrorism financing efforts, emphasizing the commitment to implementing Recommendation (15) by the Financial Action Task Force, as stated in a study conducted by the National Committee for Combating Money Laundering and Financing of Terrorism.
The crypto restrictions enforced by the CMA in Kuwait are part of a broader inter-departmental crypto ban. Various supervisory authorities, including the Ministry of Commerce and Industry, the Central Bank of Kuwait, and the Insurance Regulatory Unit, are involved in this initiative.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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