• Kuwait’s Capital Markets Authority issued a new circular to ban the use of crypto assets for payments and investments.
• The ban covers all crypto-related activities such as mining, payment methods, and investments.
• The prohibition is part of the country’s efforts to prevent money laundering and terrorist financing using crypto.
Middle Eastern Country Bans Crypto Activities
The financial regulator of a petroleum-reliant economy in the Middle East just issued a new circular to clamp down on crypto activities in the country. The circular, which was issued by Kuwait’s Capital Markets Authority on Monday, bans the use of crypto assets as a payment method and as a form of investment in the state of Kuwait.
Ban Covers All Crypto-Related Activities
The issuance also prohibits digital coins from being treated as a decentralized currency and bars companies from providing crypto-related services. Similarly, it forbids its 4.45 million residents from engaging in all crypto-mining activities with the exception of securities regulated by the Central Bank of Kuwait and other securities and financial instruments regulated by the Capital Markets Authority.
Ban Aimed at Preventing Money Laundering
The measure follows the conclusion of a study prepared by the National Committee for Combating Money Laundering and Terrorist Financing, which aims to implement recommendations set forth by Financial Action Task Force (FATF) to prevent money laundering and terrorist financing using cryptocurrency.
Implications for Crypto Industry
This decision affects not only individual traders but also companies that offer cryptocurrency related services within Kuwait such as exchanges or trading platforms that deal with digital assets like Bitcoin or Ethereum. It remains unclear how this decision will affect existing businesses operating within these parameters or if any exemptions may be granted in certain cases.
Kuwait has taken steps towards banning all cryptocurrency related services within its borders, highlighting their stance against money laundering through digital currencies such as Bitcoin or Ethereum. This decision is likely to have an impact on existing businesses operating within these parameters while potentially creating more restrictions for individuals interested in participating in cryptocurrency trading activities within this region.