Kuwait Bans Cryptocurrencies and Mining
Kuwait bans cryptocurrencies and mining to tackle money laundering, warns of risks and penalties.
Kuwait's financial regulator, the Capital Markets Authority, banned the use of cryptocurrencies for payments or investment on Monday. This decision is to fight against money laundering in the country.
The authority has also put a complete stop to all digital asset mining and does not accept crypto as a form of decentralized currency. They warned that companies should not offer any services related to crypto. However, securities regulated by the Central Bank of Kuwait and the Capital Markets Authority are not included in this ban.
This action is part of following the global crypto asset recommendations by the Financial Action Task Force (FATF). This comes after a study by the National Committee for Combating Money Laundering and Financing of Terrorism. Even though FATF asks countries to prevent money laundering and follow its rules, it hasn't told any country to ban crypto.
The regulator has reminded people about the risks of unstable, encrypted currencies that are not recognized legally. Any breaking of these bans would lead to penalties.
