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Kuwait bans transactions related to cryptocurrencies and virtual assets

State of Kuwait It is the latest jurisdiction to ban almost all transactions involving cryptocurrencies such as bitcoins (bitcoin).

On July 18, Kuwait’s main financial regulator, the Capital Markets Authority (CMA), Let them free relevant circular supervision and issuance of virtual assets in the country.

In the circular, the CMA reaffirmed its commitment “absolute ban” about the main use cases and transactions involving cryptocurrencies, including payments, investments and mining.

The circular also to license enabling businesses to offer virtual asset services as a business.

At the same time, Securities and other financial instruments regulated by the Central Bank of Kuwait and the CMA are exempt from the latest restrictions.

In addition to the bans, CMA asked its customers to be cautious and aware of the risks associated with virtual assets. The regulator drew particular attention to cryptocurrencies, by claiming “they have no legal status and are not regulated or sanctioned.”

CMA added:

“It is not tied to any particular asset or issuer, and the prices of these assets are always driven by speculation that exposes them to sharp declines.”

The regulator noted that the penalties for violating Kuwait’s anti-money laundering laws are regulated in Article 15 of Law No. 106 of 2013.

Related: UAE establishes itself as prime destination for Bitcoin mining in the Middle East

The regulator said Kuwait’s new legislation is in line with the country’s measures to combat money laundering and terrorist financing. The CMA also referred to the findings of a study by the National Committee to Combat Money Laundering and Terrorist Financing on the advisory efforts of the Financial Action Task Force.

Second local reports, The CMA’s cryptocurrency restrictions are part of a new cross-departmental ban on cryptocurrencies. Including several supervisory authorities in Kuwait. Similar circulars were allegedly issued by the Central Bank of Kuwait, the Ministry of Trade and Industry and the Insurance Regulatory Unit.

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