Kuwait’s Capital Markets Authority (CMA) has taken a firm stance against cryptocurrencies, reiterating its commitment to an “absolute prohibition” on virtually all crypto operations within the country.
The latest circular issued by the CMA on July 18th enforces strict regulations surrounding virtual assets, including cryptocurrencies like Bitcoin. Major use cases, such as payments, investments, and mining, are explicitly banned.
Additionally, local regulators are prohibited from granting licenses for firms to offer virtual asset services as a commercial business.
While financial instruments regulated by the Central Bank of Kuwait and the CMA are exempt from these prohibitions, the CMA emphasizes the importance of raising awareness about the risks associated with virtual assets, stating that they lack legal status and support.
Speaking about cryptocurrencies, the CMA said:
“It is not linked to any asset or issuer, and that the prices of these assets are always driven by speculation that exposes them to a sharp decline.”
The ban aligns with Kuwait’s efforts to combat money laundering and terrorist financing, reflecting the country’s commitment to implementing recommendations set by the Financial Action Task Force.