Absolute Crypto Ban in Kuwait

Kuwait's Capital Markets Authority (CMA) confirms the ban on all major crypto operations, including payments, investments, and mining.

The CMA prohibits local regulators from issuing licenses for providing virtual asset services as a commercial business.

The ban aligns with Kuwait's measures to combat money laundering and terrorist financing, and similar circulars have been issued by other supervisory authorities in the country.

Kuwait's Capital Markets Authority Implements Comprehensive Crypto Ban

Kuwait's main financial regulator, the Capital Markets Authority (CMA), officially confirms the "absolute prohibition" on major crypto operations, such as payments, investments, and mining. The ban also extends to any licenses issued by local regulators for providing virtual asset services commercially.

Regulator Warns of Risks Associated with Virtual Assets

The CMA advises customers to be cautious about virtual assets and the associated risks. Cryptocurrencies, in particular, are flagged for their lack of legal status and backing, and their prices driven by speculation, making them susceptible to sharp declines. The CMA added that the cryptocurrencies “don’t carry a legal status and are not issued or supported.”

“It is not linked to any asset or issuer, and that the prices of these assets are always driven by speculation that exposes them to a sharp decline.” - the CMA

Measures Against Money Laundering and Terrorist Financing

The CMA's crypto restrictions align with Kuwait's efforts to combat money laundering and terrorist financing. Other supervisory authorities in the country, including the Central Bank of Kuwait, the Ministry of Commerce and Industry, and the Insurance Regulatory Unit, have also issued similar circulars as part of the inter-departmental crypto ban.