The financial regulator of a petroleum-dependent economy in the Middle East has just issued a new circular to curb crypto activity in the country.
The circular, issued Monday by the Kuwaiti Capital Markets Authority, prohibits the use of crypto assets as a method of payment and as a form of investment.
The issuance also prohibits digital coins from being treated as decentralized currencies and prohibits companies from offering crypto-related services.
“It is prohibited to license or grant any natural or legal person in the State of Kuwait to provide virtual asset services as a commercial enterprise for him or on behalf of others (in addition to the fact that no licenses have yet been issued in this regard).”
Kuwait also bans its 4.45 million residents from participating in all crypto mining activities.
“Securities regulated by the Central Bank of Kuwait and other securities and financial instruments regulated by the Capital Markets Authority are excluded from this prohibition.”
The regulator says the ban is part of the country’s efforts to implement the recommendations of the Financial Action Task Force (FATF) to prevent money laundering and terrorist financing using crypto.
The measure also follows the conclusion of a study by the National Commission to Combat Money Laundering and Terrorist Financing.
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