Kuwait places absolute ban on crypto payments and mining
Kuwait has prohibited all crypto activities and use cases in the country, including payments, mining, and investment.
The Central Markets Authority (CMA), Kuwait’s financial regulator, released a circular on July 19. The regulator stated that cryptocurrency was prohibited as a form of payment in the Middle Eastern country. The circular also banned crypto investments. Offering such services to Kuwaiti residents is not permitted.
In addition, the CMA stated that crypto mining was banned in Kuwait. It also forbids local regulators to issue licenses to any person or entity looking to “provide cryptocurrency services as a commercial business.”
The latest circular follows the conclusions of a study by the National Committee for Combating Money Laundering and Financing of Terrorism. Its goal is to implement the Financial Action Task Force’s (FATF) recommendation 15 of the international requirements. However, the FATF does not direct countries to ban crypto.
The financial regulator warned that violators would face penalties as stipulated in the country’s anti-money laundering and terrorist financing laws. However, the circular clarified that the prohibitions do not apply to “securities regulated by the Central Bank of Kuwait and other securities and financial instruments regulated by the Capital Markets Authority.
Apart from prohibiting crypto activities in the country, the Kuwaiti regulator warned customers about the risks associated with cryptocurrencies. It stated that “they do not carry a legal status and are not issued or supported.”
Kuwait joins the list of countries that have banned crypto payments. Turkey, Indonesia, and Thailand have made similar prohibitions.
