Kuwait bans cryptocurrency operations and mining

The Kuwait Capital Markets Authority (CMA) said it is committed to an “absolute ban” on nearly all cryptocurrency operations in the country. говорится on the site.

Under the circular, the measures apply to payments, investments and mining. CMA also banned local regulators from issuing any licenses that would allow firms “provide virtual asset services as a commercial business.”

The restrictions do not apply to securities and other financial instruments regulated by the Kuwaiti Central Bank and CMA. The Authority urged caution and to recognise the risks associated with cryptocurrencies.

“[…] they have no legal status, are not issued or supported by any government, and are not linked to any asset or issuer; prices of these assets are always driven by speculation,” the document says.

The CMA added that the new rules align with anti-money-laundering and counter-terrorism financing measures.

In May 2021, the Kuwaiti warned about the risks of investing in cryptocurrencies, noting their volatility. The regulator also mentioned the high electricity consumption by miners, which “adds an environmental aspect to the threat”.

Earlier in February 2023, former member of the People’s Bank of China’s Monetary Policy Committee, Huang Yiping, urged authorities reconsider the total ban on Bitcoin.