Kuwait Capital Market Authority Announces Prohibition of Crypto and Virtual Asset Transactions

The Capital Markets Authority has formally reaffirmed the resolve to outright banning almost all cryptocurrency operations in Kuwait.

Kuwait Capital Market Authority Announces Prohibition of Crypto and Virtual Asset Transactions

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 CMA reaffirmed in the circular its commitment to a complete ban on all significant cryptocurrency use cases and operations, including payments, investments, and mining. The circular also prohibits regional authorities from giving any permits permitting companies to offer virtual asset services as a for-profit enterprise.

CMA Warns Users

Customers were also required by the CMA to exercise caution and knowledge of the hazards related to virtual assets in addition to the prohibitions. The regulator singled out cryptocurrencies in particular, claiming that they are neither issued nor supported legally and lack any sort of legal standing.

It is not linked to any asset or issuer, and the prices of these assets are always driven by speculation that exposes them to a sharp decline.

CMA

Moreover, the regulator highlighted that Article 15 of Law No. 106 of 2013 outlines the consequences of breaking Kuwait’s anti-money laundering legislation.

CMA Hopes to Prevent Money Laundering with Precautions

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.