The Capital Markets Authority of Kuwait has issued a circular on Monday prohibiting the use of cryptocurrencies for payments or investment in order to combat money laundering. The circular also absolutely bans digital asset mining, does not recognize crypto as decentralized currency, and warns the public that companies are not allowed to provide any type of crypto-related services.
The prohibitions are in line with the Financial Action Task Force’s (FATF) global recommendations for crypto assets, and follow a study into the sector by the National Committee for Combating Money Laundering and Financing of Terrorism. The regulator has warned citizens of the risks involving volatile, encrypted currencies that do not have legal status.
Securities regulated by the Central Bank of Kuwait and other securities and financial instruments regulated by the Capital Markets Authority are excluded from this prohibition, the circular said. Any violations of the prohibitions would result in penalties, the notice said.
The FATF has not asked countries to ban crypto, it told journalists in May.