Breaking News: Middle Eastern Economy Bans Cryptocurrencies
The financial regulatory authority of a Middle Eastern economy heavily reliant on petroleum has recently issued a new circular aimed at curbing cryptocurrency activities within the country.
This circular, issued by Kuwait’s Capital Markets Authority, contains several restrictions concerning crypto assets.
Firstly, it prohibits the use of cryptocurrencies as a payment method and as a form of investment. Additionally, it disallows digital coins from being treated as decentralized currencies and restricts companies from offering crypto-related services.
The circular emphasizes that no licenses for providing virtual asset services as a commercial business have been issued within Kuwait, and this practice remains strictly prohibited.
Furthermore, Kuwait has also forbidden its 4.45 million residents from participating in any crypto-mining activities.
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It’s important to note that certain securities regulated by the Central Bank of Kuwait and other financial instruments overseen by the Capital Markets Authority are exempt from this prohibition.
The primary reason behind implementing these measures is to align with the Financial Action Task Force (FATF) recommendations, aiming to prevent money laundering and terrorist financing through cryptocurrency.
These actions are also in line with the findings of a study conducted by the National Committee for Combating Money Laundering and Terrorist Financing.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
