Kuwaiti Authorities Crack Down on Crypto: Transactions Now Prohibited

[Sophie Robert]

The Capital Markets Authority (CMA) of Kuwait recently took action to make its position on cryptocurrencies crystal clear. It did so by issuing a thorough circular that forbids the majority of transactions involving digital currencies, including the well-known cryptocurrency Bitcoin. This circular, which enforces a "absolute prohibition" on important use cases including payments, investments, and mining, leaves no space for doubt and effectively halts cryptocurrency-related operations in the nation.

Additionally, the CMA has barred local regulators from granting licenses to commercial businesses that provide virtual asset services.

• Kuwait's CMA bans most cryptocurrency operations, citing risks and lack of legal status.
• Securities are exempt, but caution is urged for dealing with virtual assets.
• The ban aligns with anti-money laundering efforts and involves multiple regulatory authorities.

Official announcement - https://www.cma.gov.kw/en/web/cma/cma-board-releases/resolutions-and-regulations/-/cmaboardreleases/detail/1384960