Kuwait's financial authority has published a circular that forbids the use of cryptocurrencies for investments or payments, outlaws the mining of any digital assets.
Kuwait's Financial Authority Prohibits Crypto Payment, Investment and Mining
Kuwait's financial authority has published a circular that forbids the use of cryptocurrencies for investments or payments, outlaws the mining of any digital assets, and acknowledges the decentralized nature of cryptocurrencies.
The public has also been forewarned by the Capital Markets Authority that businesses are not permitted to offer any services related to cryptocurrencies. This restriction does not apply to securities governed by the Central Bank of Kuwait or other securities and financial instruments governed by the Capital Markets Authority.
According to the regulator, the action was taken in response to a sector assessment by the National Committee for Combating Money Laundering and Financing of Terrorism and is intended to comply with the Financial Action Task Force's (FATF) global recommendations for crypto assets.
The international watchdog has not requested that nations outlaw cryptocurrency, even though they are expected to erect barriers to stop money laundering and abide by the FATF's travel rule, which requires cryptocurrency firms to collect and disclose data on transactions above a particular threshold. The agency also issued a warning to citizens about the dangers of using unregulated, volatile, encrypted currencies.
