The financial regulator of a petroleum-reliant economy in the Middle East just issued a new circular to clamp down on crypto activities in the country.
The circular, which was issued by Kuwait’s Capital Markets Authority on Monday, bans the use of crypto assets as a payment method and as a form of investment.
The issuance also prohibits digital coins from being treated as a decentralized currency and bars companies from providing crypto-related services.
“It is prohibited to issue or grant any natural or legal person within the State of Kuwait a license to provide virtual asset services as a commercial business for him or on behalf of others (in addition to the fact that no licenses have been issued in this regard before).”
Kuwait likewise forbids its 4.45 million residents from engaging 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 prohibition is part of the nation’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 prepared by the National Committee for Combating Money Laundering and Terrorist Financing.
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