In order to fight money laundering, Kuwait has banned the use of cryptocurrencies for investments and payments, according to a circular released on Monday by the nation’s financial regulator.
Additionally, the Capital Markets Authority outlawed the “absolute” mining of any digital assets, forbade the designation of cryptocurrencies as decentralized money, and reminded the public that no businesses are permitted to offer any kind of services relating to cryptocurrencies.
The circular said that the prohibition does not apply to securities governed by the Central Bank of Kuwait or other securities and financial instruments governed by the Capital Markets Authority.
According to the regulator, the limitations were put in place in response to a National Committee for Combating Money Laundering and Financing of Terrorism research into the industry and are intended to comply with the Financial Action Task Force’s (FATF) global recommendations for crypto assets.
Although nations must erect barriers to stop money laundering and abide by the FATF’s travel rule, which requires crypto firms to gather and share data on transactions above a certain threshold, the international watchdog has not requested that nations outlaw cryptocurrency, it told in May.
The regulator alerted people to the dangers associated with volatile, encrypted currencies that lack legal legitimacy. The notification stated that there will be penalties for any violators of the restrictions.
