On July 19, the Central Markets Authority (CMA) of Kuwait issued a circular banning all activities related to cryptocurrencies, including investment, payments and mining. Violators will be penalized according to the nation’s anti-money laundering and terrorist financing laws. Furthermore, it is illegal to obtain a license for providing crypto services commercially.
The CMA also warned investors of the risks associated with cryptocurrencies as they are not legally recognized and not supported by any issuer. This decision follows the National Committee for Combating Money Laundering and the Financing of Terrorism’s implementation of Recommendation 15 of the International Requirements of the Financial Action Task Force (FATF).
Kuwait joins other countries like Thailand, Indonesia and Turkey in prohibiting the use of cryptocurrencies for payments.
This news has raised questions regarding the legal status of cryptocurrencies in Kuwait. It is essential to note that the FATF does not require nations to completely outlaw cryptocurrencies.