Kuwait Bans Crypto: Payments, Investment, and Mining Prohibited

• Kuwait has issued a circular prohibiting the use of crypto for payments, investments and mining in order to meet FATF requirements for preventing money laundering.
• The Capital Markets Authority also warned citizens against the risks associated with volatile, encrypted currencies that do not have legal status.
• Violations of these prohibitions will result in penalties.

Kuwait Cracks Down on Crypto

The Capital Markets Authority of Kuwait has prohibited the use of crypto for payments or investment, placed an “absolute” ban on all digital asset mining, and prohibited the recognition of crypto as decentralized currency.

Why These Regulations?

These prohibitions are aimed at coming into compliance with the Financial Action Task Force’s (FATF) global recommendations for crypto assets, which followed a study into the sector by the National Committee for Combating Money Laundering and Financing of Terrorism.

Risks Involved

The regulator warned citizens about the risks involved with volatile, encrypted currencies that do not have legal status.

Penalties For Violations

Any violations of these prohibitions would result in penalties.

Exemptions From Regulation

Securities regulated by the Central Bank of Kuwait and other securities and financial instruments regulated by CMA are excluded from this prohibition.