Kuwait Bans Crypto Payments, Investment and Mining
• Kuwait has issued a circular prohibiting the use of cryptocurrency for payments or investment to combat money laundering.
• The prohibition is in compliance with the Financial Action Task Force’s recommendations and followed a study by the National Committee for Combating Money Laundering and Financing of Terrorism.
• Any violations of these prohibitions would result in penalties.
Kuwait Cracks Down on Crypto
Kuwait has prohibited the use of crypto for payments or investment to combat money laundering, according to a circular by the country’s financial regulator issued on Monday.
Banning Payments, Investment and Mining
The Capital Markets Authority also placed an „absolute“ ban on all digital asset mining, prohibited the recognition of crypto as decentralized currency, and also warned the public that companies are not allowed to provide any type of crypto-related services.
Requirements Set By FATF
The prohibitions are an effort to meet requirements set by the FATF on preventing money laundering via crypto, the Capital Markets Authority said.
Risks Involved With Cryptocurrency
The regulator warned citizens of the risks involving volatile, encrypted currencies that do not have legal status.