Kuwait has joined the list of jurisdictions banning nearly all cryptocurrency operations, including Bitcoin. On July 18, the Capital Markets Authority (CMA), Kuwait's primary financial regulator, issued a notice outlining its commitment to the "absolute prohibition" of major cryptocurrency use cases such as payments, investing, and mining. The CMA also stated that local regulators cannot issue licenses for companies to offer virtual asset services as a commercial business. However, securities and other financial instruments regulated by the Central Bank of Kuwait and the CMA are exempt from the ban.
Additionally, the CMA is urging clients to exercise caution and be aware of the risks associated with virtual assets, particularly cryptocurrencies, which it claims have no legal status or backing and are prone to speculation-driven price fluctuations. The regulator emphasized the importance of combating money laundering and terrorism financing, aligning the new rules with the country's anti-money laundering measures.
The cryptocurrency restrictions put forth by the CMA are part of a broader cross-departmental cryptocurrency ban in Kuwait. Similar notices have been issued by the Central Bank of Kuwait, the Ministry of Commerce and Industry, and the Insurance Regulatory Authority, indicating a coordination attested effort by various regulators to curb cryptocurrency-related activities in the country.
