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Kuwait’s Capital Markets Authority has officially confirmed the committedness to “absolute prohibition” of virtually each crypto operations successful the country.
The authorities of Kuwait is the latest jurisdiction to prohibition virtually each operations involving cryptocurrencies similar Bitcoin (BTC).
On July 18, Kuwait’s main fiscal regulator, the Capital Markets Authority (CMA), issued a circular connected supervision and issuance of virtual assets successful the country.
In the circular, the CMA confirmed the committedness to “absolute prohibition” connected large usage cases and operations involving cryptocurrencies, including payments, investments arsenic good arsenic mining.
The circular besides bans section regulators from issuing immoderate licenses allowing firms to supply virtual plus services arsenic a commercialized business.
In the meantime, securities and different fiscal instruments regulated by the Central Bank of Kuwait and the CMA are excluded from the latest prohibitions, the announcement notes.
Apart from the prohibitions, the CMS besides required customers to instrumentality caution and beryllium alert of the risks associated with dealing with virtual assets. The regulator peculiarly flagged cryptocurrencies, arguing that they “don’t transportation a ineligible presumption and are not issued oregon supported.”
The CMA added:
“It is not linked to immoderate plus oregon issuer, and that the prices of these assets are ever driven by speculation that exposes them to a crisp decline.”The penalties for violating Kuwait’s Anti-Money Laundering laws are stipulated successful the Article (15) of Law No. 106 of 2013, the regulator noted.
Related: UAE emerges arsenic a pro-Bitcoin mining destination successful the Middle East
Kuwait’s caller regulations travel successful enactment with the country’s measures to combat wealth laundering and violent financing, the regulator noted. The CMA besides referred to the conclusions of a survey by the National Committee for Combating Money Laundering and Financing of Terrorism regarding the committedness of applying the Recommendation (15) by the Financial Action Task Force.
According to section reports, the CMA’s crypto restrictions are portion of a caller inter-departmental crypto prohibition successful Kuwait, involving respective supervisory authorities. Similar circulars person been reportedly besides issued by the Central Bank of Kuwait, the Ministry of Commerce and Industry, and the Insurance Regulatory Unit.
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