Kuwait bans virtually all cryptocurrency trading
The Kuwait Capital Markets Authority (CMA) announced a move that deals a heavy blow to the market
Kuwait’s Capital Markets Authority (CMA) has announced a drastic move by issuing a circular establishing an outright ban on almost all cryptocurrency-related operations, including the use of Bitcoin and other virtual currencies in payments, investments, and mining.
The circular issued by the CMA also states that local regulators will not be able to grant licenses to companies to offer virtual asset services as part of their business operations.
However, it is important to mention that this prohibition does not affect securities and other financial instruments that are regulated by the Central Bank of Kuwait and the CMA itself, which are excluded from this restrictive measure.
The CMA warns customers about the risks associated with cryptocurrencies, noting that they have no legal status and lack the backing of any official entity. Furthermore, since they are not tied to any asset or issuer, their prices are often driven by speculation, making them highly volatile and prone to significant falls.
The issued circular also highlights that the penalties for violating Kuwait’s anti-money laundering laws are clearly stipulated in Article 15 of Law No. 106 of 2013, and are expected to be rigorously enforced.
This ban marks a significant shift in Kuwait’s position regarding cryptocurrencies and shows the growing concern of financial authorities about the potential impact of these virtual currencies on the country’s economic stability. From now on, citizens and companies must comply with this new regulation to avoid facing the established sanctions.
K.Tovar
Source: Cointelegraph
(Reference image source: André François McKenzie, Unsplash)
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