Kuwait takes a firm stance against money laundering and terrorism financing with an “absolute prohibition” on all cryptocurrency-related activities.
Kuwait has just joined the list of nations that have outlawed all cryptocurrency-related activity completely, claiming efforts to combat money laundering and terrorism financing. There is a “absolute prohibition” on significant use cases and activities of cryptocurrencies, claims the Capital Markets Authority (CMA) circular.
In Kuwait, Crypto Transactions Are Prohibited
Payments, investments, mining operations, and cryptocurrency exchanges are all covered by the order.
You must refrain from conducting transactions where virtual currencies are used as a payment instrument or method within the parameters of this prohibition, the circular (translated from Arabic) stated. “Absolute prohibition of using virtual assets as a payment instrument/method or recognizing it as a decentralized currency in the State of Kuwait.”
As a result, it is vital to stop offering any clients this kind of service because dealing with virtual assets as a form of investment is illegal.
The ruling further prohibits local governments from granting licenses to businesses that provide services using virtual assets. The most recent restriction order does not apply to securities and other financial products governed by the Central Bank of Kuwait and the CMA.
The agency further emphasized that cryptocurrencies “don’t carry a legal status and are not issued or supported” and urged users to be wary of any dangers that might be involved.
“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,” the order continued.
Various Cryptocurrency Rules
Globally, cryptocurrency regulation has risen to the top of the agenda. However, the regulators’ positions can differ. While some nations, like Hong Kong and Dubai, have made headway in regulating cryptocurrencies, others, like Canada, have driven away many crypto exchanges with their stringent regulations.
Only a small number of nations, such as China, have outright banned cryptocurrency, while many others have put a prohibition on cryptocurrency payments. Russia and Thailand are two nations that permit cryptocurrency investments but forbid payments. Additionally, Belarus intends to outlaw peer-to-peer cryptocurrency transfers.