Kuwait Capital Markets Authority Reaffirms Comprehensive Crypto Asset Ban

In a circular released by the Capital Markets Authority of Kuwait, the regulator reaffirmed its presumption that Kuwait strictly prohibits the usage of virtual currencies and bans mining activities wrong the Gulf state. The authorization besides emphasized the value for businesses to pass customers astir imaginable “risks that whitethorn arise” with dealing with crypto assets not prohibited extracurricular of Kuwait.

Kuwait’s Regulator Warns Businesses of Consequences for Non-compliance Toward Crypto Ban

On July 18, 2023, Kuwait’s Capital Markets Authority, the regulator for fiscal instruments and securities successful the Gulf nation, reiterated its ban connected crypto assets. The authorization states the rules align with enhancing efforts to combat wealth laundering and violent financing. The regulations besides comply with Financial Action Task Force recommendations and standards.

Kuwait’s regulator underscores 5 captious rules which stipulate an “absolute prohibition of utilizing virtual assets arsenic a outgo instrument/method.” Moreover, Kuwaiti businesses are forbidden from engaging with virtual assets arsenic an concern vehicle, requiring firms successful the Gulf authorities to debar “offering this benignant of work to immoderate customers.” Crypto plus mining and related activities are besides strictly prohibited, and Kuwaiti citizens and businesses indispensable abstain from participation.

Any concern violating the regulator’s rules whitethorn look penalties, including the imaginable nonaccomplishment of their concern license. The regulator besides urges Kuwaiti businesses to amended customers astir the purported risks of crypto assets. The bulletin indicates that crypto assets are utilized beyond the borders of the Gulf nation. The regulator emphasizes that these rules are articulated successful Article 15 of Law No. 106 of 2013.

Kuwait’s Capital Markets Authority insists crypto assets “are not ineligible tender, are not issued oregon supported by immoderate government, are not tied to immoderate plus oregon issuer, and their prices are ever driven by speculation that exposes them to crisp drops.”

What bash you deliberation astir Kuwait reiterating its crypto prohibition rules successful the latest circular? Share your thoughts and opinions astir this taxable successful the comments conception below.