The Kuwait Capital Markets Authority (CMA) has issued a circular on overseeing the issuance of virtual assets. The document prohibits any operations related to cryptocurrency.
The CMA prohibits the use of virtual assets as an investment vehicle, payment instrument or decentralized currency in the State of Kuwait.
Government entities are prohibited from issuing or granting any person or entity a license to provide virtual asset services. A similar prohibition applies to any activity related to the mining of cryptocurrencies.
CMA spokesman Ahmed Abdel Rahman Al Melhem explained that the reason for issuing the circular was the results of a study conducted by the National Committee for Combating Money Laundering and the Financing of Terrorism.
Earlier, the Central Bank of Kuwait issued a warning about the risks of investing in cryptocurrencies due to their high volatility and the complexity of regulation.
