Kuwait has banned bitcoin, cryptocurrency and virtual assets transactions in the country.
The state of Kuwait is the latest jurisdiction to ban virtually all operations involving cryptocurrencies like Bitcoin
BTC
On July 18, Kuwait’s main financial regulator, the Capital Markets Authority (CMA), issued a circular on the supervision and issuance of virtual assets in the country.
In the circular, the CMA confirmed the commitment to “absolute prohibition” on major use cases and operations involving cryptocurrencies, including payments, investments, and mining.
The circular also bans local regulators from issuing any licenses allowing firms to provide virtual asset services as a commercial business.
The prohibitions are aimed at coming into compliance with the Financial Action Task Force’s (FATF) global recommendations for crypto assets, and followed a study into the sector by the the National Committee for Combating Money Laundering and Financing of Terrorism, according to the regulator.
Although countries are required to put up guardrails for preventing money laundering, and adhere to the FATF’s travel rule – which requires crypto firms to collect and share data on transactions above a certain threshold – the international watchdog has not asked countries to ban crypto, it told CoinDesk in May.
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