Kuwait Financial Regulator Issues Cryptocurrency Ban

Kuwait’s main financial regulator, the Capital Markets Authority (CMA), has issued a circular on the regulation and issuance of virtual assets in the country, stating that the use of cryptocurrencies for payment, investment and mining is “absolutely prohibited” in Kuwait. The notice also prohibits local regulators from issuing any licenses that would allow companies to serve virtual assets as a commercial business. Meanwhile, securities and other financial instruments regulated by Kuwait’s central bank and CMA are exempt from the latest ban. In addition to the above prohibition, CMA also requires users to be cautious and pay attention to the risks associated with handling virtual assets. The regulator said cryptocurrencies have no legal status and are not issued or backed by any government.