1 year ago
Kuwait Capital Markets Authority (CMA) banned each forms of cryptocurrency usage successful the country, including mining activities, according to a July 18 circular.
The fiscal regulator imposed an “absolute ban” connected each payments and investments involving cryptocurrencies, adding that it does not admit virtual assets arsenic a decentralized currency. A translated transcript of the connection reads:
“Absolute prohibition of each asset/virtual currency mining activities.”
However, the merchandise besides stated that “virtual assets bash not see integer representations of fiat currencies, securities, and different fiscal assets.”
CMA warned businesses and individuals successful the state not to facilitate crypto-related transactions oregon investments arsenic it has not issued immoderate licenses.
Kuwait warned citizens astir the risks attached to cryptocurrencies, adding that these assets deficiency ineligible presumption due to the fact that they are not issued oregon backed by immoderate government.
The regulator further stated that cryptocurrencies “are ever driven by speculation that exposes them to a crisp decline.”
Defaulters of this caller regularisation would look penalties akin to violators of the country’s wealth laundering and violent financing act.
The CMA, the Central Bank of Kuwait, the Ministry of Commerce and Industry, and the Insurance Regulatory Unit jointly issued the circular.
Kuwait wants to combat wealth laundering done a crypto ban
According to its statement, the regulator attributed its determination to applying the Financial Action Task Force (FATF) recommendations connected virtual assets.
While the FATF has advised countries to instrumentality measures to combat wealth laundering and coercion financing, the planetary enactment did not explicitly urge banning cryptocurrencies.
The FATF website shows that the regulator recommends that competent nationalist authorities show virtual plus work providers and that the work providers are taxable to the aforesaid applicable FATF measures that use to fiscal institutions.
Meanwhile, Kuwait CMA further claimed that the National Committee for Combating Money Laundering and Financing of Terrorism studied the assemblage earlier deciding connected an implicit ban.
While respective countries person rejected cryptocurrency’s usage arsenic a ineligible means of payment, an outright prohibition connected integer assets for concern suggests that the regulator wants to stamp retired the adoption of cryptocurrencies successful the state altogether.
The station Kuwait imposes ‘absolute ban’ connected virtual assets to combat wealth laundering risks appeared archetypal connected CryptoSlate.
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