Kuwait forbids crypto and virtual asset transactions in the country

The most recent country to forbid almost all transactions involving cryptocurrencies like Bitcoin is Kuwait. 

The Capital Markets Authority (CMA), the primary financial regulator in Kuwait, released a circular on the supervision and issuance of virtual assets in the nation on 18 July. In the circular, the CMA confirmed the commitment to ‘absolute prohibition’ on major use cases and operations involving cryptocurrencies, including payments, investments, and mining.

The circular also prohibits regional authorities from giving any licences permitting companies to offer virtual asset services as a commercial business. 

The notification further states that the most recent restrictions do not apply to securities and other financial instruments governed by the Central Bank of Kuwait and the CMA.

CMA alerts users on the dangers related to virtual assets 

In addition to the limitations, the CMA demanded that users exercise caution and knowledge of the dangers related to virtual assets. Cryptocurrencies were singled out by the regulator, who claimed that they don't carry a legal status and are not issued or supported.
 
“It is not linked to any asset or issuer, and the prices of these assets are always driven by speculation that exposes them to a sharp decline,” stated CMA.

In case of breaking Kuwait's anti-money laundering regulations, a person will be charged with the penalty under Article 15 of law no. 106, drafted in 2013, mentioned the regulator. Kuwait's new rules are in line with the country's efforts to thwart money laundering and terrorist financing. 

The CMA's crypto restrictions, according to local media, are part of a new inter-departmental crypto prohibition involving multiple supervisory authorities in Kuwait. According to reports, the Central Bank of Kuwait, the Ministry of Commerce and Industry, and the Insurance Regulatory Unit have all released similar circulars.