Kuwait’s Capital Markets Authority (CMA) has officially announced its unwavering commitment to an “absolute prohibition” of nearly all cryptocurrency operations within the country.
Kuwait is the latest jurisdiction to enact a comprehensive ban on virtually all activities involving cryptocurrencies, including prominent digital assets like Bitcoin.
On July 18, the country’s primary financial regulator, the Capital Markets Authority (CMA), issued a circular pertaining to the supervision and issuance of virtual assets in Kuwait.
Within the circular, the CMA emphatically restated its determination to enforce an “absolute prohibition” on significant use cases and operations involving cryptocurrencies, encompassing payments, investments, and mining activities.
Moreover, the circular effectively bars local regulatory bodies from granting licenses that would enable companies to offer virtual asset services as a commercial enterprise.
However, it’s essential to clarify that the latest prohibitions do not extend to securities and other financial instruments regulated by the Central Bank of Kuwait and the CMA, as highlighted in the official announcement.
Kuwait’s new regulatory framework is aligned with the country’s ongoing efforts to combat money laundering and terrorist financing, as emphasized by the financial regulator. The CMA also made reference to the findings of a study conducted by the National Committee for Combating Money Laundering and Financing of Terrorism, underscoring their commitment to implementing recommendation 15 put forth by the Financial Action Task Force.
