As the use of Bitcoin (BTC) and cryptocurrencies continues to increase, some countries choose to legally regulate cryptocurrencies, while others choose to ban them.
Kuwait was the last country to choose the path of prohibition.
Kuwait's financial watchdog, the Capital Markets Authority (CMA), wrote in a circular that it banned the use of cryptocurrencies in the field of investments and payments as part of the fight against money laundering.
Apart from the payment and investment area, the CMA also stated that an absolute ban has been placed on all cryptocurrency mining.
Apart from these, the CMA, which prohibits the recognition of cryptocurrencies as decentralized currency, also warned citizens that companies are not allowed to provide any crypto-related services.
The circular included the following statements:
“Many supervisory and regulatory bodies such as the Central Bank of Kuwait, the Capital Markets Authority, the Ministry of Trade and Industry and the Insurance Regulatory Authority have issued circulars on cryptocurrencies for their units subject to their supervision.
Accordingly, they strictly forbade the use of cryptocurrencies as a means of payment or the recognition as a decentralized currency in Kuwait, and transactions in which cryptocurrencies are used as a means of payment within the scope of this ban.
Apart from these, cryptocurrency mining activities are also completely banned.
However, 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.
Finally, in the circular, he warned the citizens that some penalties would be imposed in case of any violation of the bans.
